|Bid||39.92 x 1100|
|Ask||40.04 x 1400|
|Day's Range||39.91 - 40.49|
|52 Week Range||23.86 - 40.49|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||56.06%|
|Beta (5Y Monthly)||1.60|
|Expense Ratio (net)||0.60%|
Despite occasional trade tensions, U.S. equity gauges have added solid gains this year. But these sector ETFs handily beat the soaring broader market.
Here is a look at the 25 best and 25 worst ETFs from the past trading month. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
The fourth quarter brings strong gains for Wall Street buoyed by easing U.S.-China trade worries, stronger-than-expected corporate earnings and Fed's third rate cut.
October has been kind to the U.S. stock market thanks to U.S.-China trade progress, better-than-expected corporate earnings and a third Fed rate cut.
Texas Instruments' weak revenue guidance hurt semiconductor ETFs lately. But, rebounding smartphone sales, greater spending on technology, holiday deals and likely U.S.-China trade truce bode well.
As most companies in this space have seen no negative earnings estimate revisions, semiconductor ETFs might continue to see smooth trading in the weeks ahead.
A few sector ETFs have outperformed the market. We have highlighted five such ETFs that have raked in substantial gains in September and could be better plays if the trend prevails.
Renewed U.S.-China trade tensions, hawkish rate outlook by the Fed and some downbeat earnings releases may lead semiconductor ETFs to slump in the near term.
As most companies in this space are likely to deliver a positive earnings surprise, the semiconductor ETFs might continue to see smooth trading in the weeks ahead.
Editor's note: This story was previously published in February 2019. It has been updated and republished.Semiconductor stocks proved to be important drivers of the broader technology sector's upside in 2018. Just look at the widely followed PHLX SOX Semiconductor Sector Index, which is up 9.60% year-to-date. Investors looking to profit should consider semiconductor ETFs.Shares of Advanced Micro Devices (NASDAQ:AMD) have recently been buoyed by a spate of bullish analyst commentary, including a round of upward price target revisions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the other hand, there are risks associated with semiconductor stocks and exchange-traded funds (ETFs). Late last year, Morgan Stanley waxed bearish on the semiconductor group:"Memory markets have worsened in recent weeks. For DRAM [memory chip], demand is weakening, inventory and pricing pressures are building, and vendors are struggling to move bits," according to Morgan Stanley. "In NAND [flash memory], there is just too much supply. Earnings risks are emerging from 3Q and our cautious view on memory is playing out."Semiconductor stocks and ETFs are also facing headwinds created by the U.S.- China trade war."The U.S. semiconductor industry will warn President Donald Trump's administration that curbs on exports of chips and equipment to China could damage American jobs," according to Nikkei Asian Review. * 7 Stocks Top Investors Are Buying Now Of course, positive surprises are always possible and negative expectations are not etched in stone. But investors looking to make bullish chip bets can consider these seven semiconductor ETFs -- instead of risking their money in individual chip stocks. iShares PHLX Semiconductor ETF (SOXX)Expense ratio: 0.47% per year, or $47 on a $10,000 investment.One of the largest semiconductor ETFs, the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) targets the aforementioned PHLX SOX Semiconductor Sector Index. This is a cap-weighted fund, meaning it tilts toward the largest semiconductor stocks. Click to Enlarge Source: Shutterstock Qualcomm (NASDAQ:QCOM), NVIDIA and Texas Instruments (NASDAQ:TXN) are the three largest holdings in SOXX, combining for over 26% of the fund's roster. Fortunately for SOXX investors, this semiconductor ETF is not heavily allocated to Micron Technology (NASDAQ:MU), a stock that has been absolutely drubbed in recent sessions.The larger-cap weighting may help undercut some of the volatility in store for semiconductor ETFs and stocks if the U.S.-China trade war continues. VanEck Vectors Semiconductor ETF (SMH)Expense ratio: 0.35% per yearIn general, semiconductor ETFs are focused funds and the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) is even more focused than rival SOXX. This semiconductor ETF is home to 25 stocks, compared to 30 in SOXX. Click to Enlarge Source: Shutterstock Like SOXX, SMH is somewhat top-heavy, but there are some differences among the semiconductor ETFs' components.The VanEck fund devotes a combined 24.47% of its weight to Taiwan Semiconductor (NYSE:TSM), Intel (NASDAQ:INTC) and NVIDIA. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip SMH's large allocations to semiconductor names like Intel and Taiwan Semiconductor put the fund front-and-center at demand trends for personal computers and related devices as well as mobile phones. SMH's top 10 holdings, a group combining for over 58% of the fund's weight, do not include Advanced Micro Devices. SPDR S&P Semiconductor ETF (XSD)Expense ratio: 0.35% per yearThe semiconductor ETFs mentioned above are cap-weighted funds, but the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) is an equal-weight ETF, a strategy to consider for investors looking for exposure to mid- and small-cap semiconductor names. Click to Enlarge Source: FlickrNone of XSD's 34 holdings exceed weights of 5.79%. Additionally, this semiconductor ETF featured Advanced Micro Devices as its largest holding, a trait not widely found among funds in this category.Owing to the equal-weight methodology, XSD does not feature Intel nor Texas Instruments among its top 10 holdings, making this semiconductor ETF one to consider for investors looking to diversify away from some of the industry's largest names.Invesco Dynamic Semiconductors ETF Expense ratio: 0.61% per yearKeeping with the theme of semiconductor ETFs with non-cap-weighted methodologies, there is the Invesco Dynamic Semiconductors ETF (NYSEARCA:PSI). PSI offers a truly smart beta approach to semiconductor stocks. Click to EnlargeThe Dynamic Semiconductor Intellidex Index, PSI's underlying benchmark, evaluates "companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.PSI's exposure to the quality and value factors, in particular, could be of use to investors at a time when analysts and market observers are concerned about the semiconductor industry's outlook into year-end.Additionally, semiconductor stocks are viewed as somewhat overvalued relative to broad equity benchmarks, so PSI's value exposure could be a trait to embrace. Twenty-seven percent of the fund's holdings are classified as value stocks. * 7 Dependable Dividend Stocks to Buy PSI's price-to-earnings ratio of 27.77 is above the comparable metric on SOXX. First Nasdaq Semiconductor ETF (FTXL)Expense ratio: 0.60% per yearThe First Nasdaq Semiconductor ETF (NASDAQ:FTXL) is another smart beta approach to semiconductor ETFs, but with a different approach than the aforementioned PSI. Click to Enlarge Source: Shutterstock FTXL turns two years old this month, making it the youngest semiconductor ETF highlighted here. The fund tracks the Nasdaq U.S. Smart Semiconductor Index. That index employs low volatility, growth and value factors in its stock selection process.FTXL's value trait focuses on cash flow-to-price, while its growth factor emphasizes price appreciation over four time-frames -- ranging from three to 12 months. Even with its smart beta methodology, FTXL's 28 holdings tilt toward the largest semiconductor stocks with Texas Instruments and Intel combining for 15.32% of the fund's weight. SPDR Kensho Intelligent Structures ETF (XKII)Expense ratio: 0.46% per yearThe SPDR Kensho Intelligent Structures ETF (NYSEARCA:XKII) is not a pure semiconductor ETF, but the fund does feature sizable exposure to chip stocks. Among the 14 industry groups represented in XKII, semiconductors is the second-largest at 12.11%. Click to Enlarge Source: Shutterstock XKII components provide exposure to following next-generation investment themes: smart building infrastructure, smart power grids, intelligent transportation infrastructure and intelligent water infrastructure. * 10 Stocks to Sell for an Economic Slowdown XKII's underlying index "goes beyond well-known traditional Industrial firms by including companies involved in intelligent and connected home technologies, smart power grid technology, road sensors, traffic management infrastructure and smart water meters from other GICS sectors," according to State Street Global Advisors (SsgA). ROBO Global Robotics & Automation Index ETF (ROBO)Expense ratio: 0.95% per yearThe ROBO Global Robotics & Automation Index ETF (NASDAQ:ROBO), along with other robotics ETFs, feature some semiconductor exposure because chips are integral parts of many of the products tied to the booming artificial intelligence and robotics investment themes. Click to Enlarge Source: Shutterstock Nearly half of ROBO's 87 holdings are classified as technology stocks. That group includes companies with exposure to artificial intelligence, computer processing, actuation, sensing and integration. All of those endeavors require some use of semiconductors."Some investors still see robotics and AI as niche investments," said ROBO Global. "But more and more, even the most risk-averse among them are realizing that it is a niche that demands a presence in every long-term portfolio. Why? Because the scope of robotics and AI is vast, and the massive impact it will have on every industry in every part of the world is now undeniable."As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal The post Top 7 Semiconductor ETFs to Buy Now appeared first on InvestorPlace.
When it comes to the Nasdaq Composite and Nasdaq-100 indexes, many investors think of growth stocks, including those from communication services, consumer and technology sectors. In fact, those three sectors combine for more than 82% of the Nasdaq-100 Index's roster.And when it comes to Nasdaq exchange traded funds (ETFs), the Invesco QQQ (NASDAQ:QQQ) is the dominant name. Home to $74.56 billion in assets under management, QQQ is one of the largest ETFs in the world.While Nasdaq is known as one of the world's largest operator of equity exchanges, the company has been a force in the indexing world dating back to the early 1970s.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Nasdaq calculates more than 40,000 diverse indexes, providing coverage across asset classes, countries and sectors," according to the company. * 7 Dependable Dividend Stocks to Buy That means in addition to QQQ, there are plenty of compelling Nasdaq ETFs out there, including some appropriate for investors seeking robust technology sector exposure. Here are some Nasdaq ETFs to consider beyond the famed QQQ. Invesco DWA NASDAQ Momentum ETF (DWAQ)Source: Shutterstock Expense ratio: 0.60% per year, or $60 on a $10,000 investment.The Invesco DWA NASDAQ Momentum ETF (NASDAQ:DWAQ) is a Nasdaq ETF that can be used as an alternative or complement to the aforementioned QQQ. DWAQ's underlying benchmark is the Dorsey Wright NASDAQ Technical Leaders Index."The Index is comprised of approximately 100 securities from an eligible universe of approximately 1,000 securities of large capitalization companies from the NASDAQ US Benchmark Index. All securities in the universe are ranked using a proprietary relative strength (momentum) measure," according to Invesco.DWAQ is a fine idea for investors looking for growth exposure because more than 83% of the fund's holdings are large-, mid- and small-cap growth stocks. Additionally, this Nasdaq ETF is a valid consideration for investors looking to overweight technology stocks as DWAQ allocates more than 31% of its roster to that sector. ProShares Equities for Rising Rates ETF (EQRR)Source: Shutterstock Expense ratio: 0.35%The ProShares Equities for Rising Rates ETF (NASDAQ:EQRR) by its very name would seem to imply it is not useful at a time when the Federal Reserve is reportedly mulling interest rate cuts. However, this Nasdaq ETF is still up nearly 10% year-to-date and is a sensible option for investors looking for a Nasdaq ETF with reduced tech exposure.EQRR, which is nearly two years old, tracks the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The aim of this Nasdaq ETF is to provide exposure to "sectors that have had the highest correlations to 10-Year U.S. Treasury yields and within those sectors, the stocks that have had a strong tendency to outperform as rates rise," according to ProShares. * 7 Short Squeeze Stocks With Big Upside Potential Giving EQRR something of a value tilt, the fund devotes over 36% of its combined weight to the financial services and industrial sectors, indicating that it can mitigate some of the volatility associated with other growth-heavy Nasdaq ETFs. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)Source: Shutterstock Expense ratio: 0.65%The First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:ROBT) is a prime example of a thematic ETF and the theme offers ample long-term potential. ROBT, which is nearly a year and a half old, targets the Nasdaq CTA Artificial Intelligence and Robotics Index and holds 95 stocks. This Nasdaq ETF places plenty of competition, but ROBT is compelling avenue to robtics investing.ROBT features exposure to three segments of the artificial intelligence and robotics universe -- companies the issuer deems to be enablers, engagers and enhancers. Engagers command 60% of ROBT's index while enablers garner 25% and enhancers land at 15%. Robotics ETFs usually feature exposure to multiple sectors, but ROBT is applicable for tech investors because the Nadaq ETF devotes 61% of its weight to that sector.Industry observers expect big growth for the themes represented in ROBT. Global robotics spending could swell to almost $231 billion by 2021, according to IDC while artificial intelligence could command $15.7 trillion of the global economy by 2030. Invesco NASDAQ Internet ETF (PNQI)Expense ratio: 0.60%With the Nasdaq being home to so many of the largest most venerable internet companies, it makes sense that there would be a dedicated Nasdaq ETF for those stocks, That fund is the Invesco NASDAQ Internet ETF (NASDAQ:PNQI), which tracks the NASDAQ Internet Index.There is plenty of competition in the internet ETF arena, but PNQI has been admirable performer, returning more than 83% over the past three years. Plus, this Nasdaq ETF is by no means small as highlighted by its $570.1 million in assets under management. * 5 EV Stocks to Buy for Big Gains Over the Next Decade What makes this Nasdaq ETF interesting relative to traditional internet ETF competitors is that mixes U.S. and international companies whereas competing funds usually focus on domestic or ex-US stocks, not both. Led by Alibaba (NYSE:BABA), four of PNQI's top 10 holdings are ex-US companies. In fact, PNQI has been a better than some rival funds that only focus on international internet companies. First Trust Nasdaq Semiconductor ETF (FTXL)Source: Shutterstock Expense ratio: 0.60%There are a few semiconductor funds out there, but the First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) is one of the more overlooked members of that group, but this Nasdaq ETF is a way for investors to access a unique weighting methodology for chip stocks.FTXL's underlying index is the Nasdaq US Smart Semiconductor Index. That benchmark uses growth, value and volatility as barometers for stock inclusion. That means that over longer holding periods, this Nasdaq ETF's returns could differ significantly from traditional chip funds.The median market value of FTXL's 30 components is $14.5 billion, indicating the fund leans toward smaller chip names, but even with that, the fund trades at favorable multiples relative to basic small-cap index funds. And even with the size bias, FTXL remains home to some of the largest semiconductor stocks. FTXL is up nearly 26% year-to-date.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 5 Nasdaq ETFs for Tantalizing Tech Investments -- Besides the QQQ appeared first on InvestorPlace.
Big tech stocks jointly injected about $330 billion in market value together over the past five trading sessions, per Wall Street Journal. Which ETFs benefited the most?
Here is a look at the 25 best and 25 worst ETFs from the past week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Despite the slide, the outlook for the sector is quite promising. This is especially true as S&P 500 Technology Sector Index has clearly outpaced the S&P 500 Index from the year-to-date look.