|Bid||0.00 x 2900|
|Ask||0.00 x 800|
|Day's Range||27.46 - 27.48|
|52 Week Range||25.21 - 30.00|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||18.99%|
|Beta (5Y Monthly)||N/A|
|Expense Ratio (net)||0.46%|
State Street Corp. (NYSE: STT), the third-largest U.S. issuer of exchange traded funds, said it has changed names and tickers for six of its ETFs backed by Kensho indexes. The changes went into effect ...
For the first four months of this year, semiconductor stocks and exchange-traded funds (ETFs) were darlings and leaders of the technology sector rally. Then came May and elevated trade tensions between the U.S. and China, the world's two largest economies.Chip ETFs and stocks have been one of the epicenters for trade-related skittishness. This month, the widely followed PHLX Semiconductor Sector Index is down 15.72%. That gauge of semiconductor stocks plunged 6.41% last week and is dangerously close to entering a bear market residing 18% below its 52-week high.Recently, the Commerce Department blacklisted the Chinese telecommunications company Huwaei, meaning the company cannot buy chips from a slew of U.S.-based firms, including many of the marquee components in a slew of major chip ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Let's be clear -- we are talking tens of billions of dollars impact," C.J. Muse, senior equity research analyst at Evercore, said in a recent note. "Loss of this business would slow down investments by U.S. chipmakers, thereby reducing the competitiveness of the U.S. semiconductor industry -- and that is a national security issue that the U.S. government needs to consider as well." * 10 Best Stocks to Buy and Hold Forever It is reasonable to expect more near-term headwinds for chip ETFs, but for aggressive investors, the now battered group could hold some appeal. Here are some chip ETFs for risk takers to consider. iShares PHLX Semiconductor ETF (SOXX)Expense Ratio: 0.47%, or $47 annually per $10,000 investedThe iShares PHLX Semiconductor ETF (NASDAQ:SOXX) tracks the aforementioned PHLX Semiconductor Index, so these are tenuous days for one of the largest chip ETFs. Several of the 30 stocks residing in this chip ETF have been caught up in the Huwaei flap, but that could be more of a near-term hurdle than a long-term detriment."Our valuations imply that the Huawei ban will be used as short-term leverage by the U.S. in ongoing negotiations with China involving tariffs and other trade negotiations," said Morningstar in a recent note on semiconductor stocks. "However, our models still assume that the ban won't last in the long term, as it would be highly destructive to technology companies in both China and the U.S., given the complexity and interwoven nature of the tech supply chain."The Huwaei issue is impactful for SOXX components because the Chinese telecom company is one of the largest semiconductor buyers in the world. Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:AVGO), which combine for over 18% of SOXX's weight, have some China exposure that needs to be worked through over the near-term.With Qualcomm, "there could be a risk here that Chinese original-equipment manufacturers don't buy chips or pay royalties (revenue from China was 67% of last fiscal year's revenue). We expect near-term pressure on Qualcomm's financial results will be at the high end of those affected in the semiconductor space," according to Morningstar. SPDR S&P Semiconductor ETF (XSD)Expense Ratio: 0.35%The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) has been less bad than cap-weighted rivals in recent weeks due in part to this chip ETF being an equal-weight fund, meaning XSD is not dominated by the likes of Intel (NASDAQ:INTC) and Qualcomm.The weighted average market value of XSD's 34 holdings is $28 billion, which is lower than the comparable metric on cap-weighted chip ETFs. While none of XSD's holdings command weights of more than 4.40% in the fund, the equal-weight strategy has not been enough to prevent this chip ETF from incurring significant damage in recent weeks. Month-to-date, XSD is lower by 14.60%. * 7 Recession-Proof Stocks to Buy as the Boom Ends "The latest bout of trade tensions around Huawei and the day-to-day tactics of the negotiations will probably lead to another bout of caution that could weigh on June quarterly results and perhaps the September forecasts for many chipmakers," said Morningstar. SPDR Kensho Smart Mobility ETF (XKST)Expense Ratio: 0.46%The SPDR Kensho Smart Mobility ETF (NYSEARCA:XKST) is not a dedicated chip ETF, but this unique fund allocates nearly 13% of its weight to semiconductor stocks and another 4.13% to semiconductor equipment makers and gives investors an avenue for tapping exciting new technology themes.XKST's underlying index "is designed to capture companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems," according to State Street.XKST's methodology is working, sort of, as the fund has been significantly less bad than dedicated chip ETFs in the month of May. In addition to its semiconductor exposure, XKST is heavily exposed to various facets of the transportation industry, making this is a highly cyclical ETF.This quasi-chip ETF could be a good buy for investors willing to wait out the current semiconductor shakeout. In other words, be patient and get some better pricing XKST.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post 3 Battered Chip ETFs Ready for a Rebound appeared first on InvestorPlace.
As investors grow accustomed to the exchange traded fund investment vehicle, many are now looking into more focused or thematic strategies to hone in on potential opportunities in specific segments of the market.
As investors grow accustomed to the exchange traded fund investment vehicle, many are now looking into more focused or thematic strategies to hone in on potential opportunities in specific segments of ...
The Dow Jones Transportation Average Index does not get the notoriety of other equity benchmarks, such as the S&P 500 or the Dow Jones Industrial Average, but the transports index is widely viewed as an important tell regarding the overall health of domestic equity markets.That index is up nearly 13% year-to-date, which is good news for transportation stocks and ETFS. Some transportation ETFs are delivering performances that are even better than that this year while other transportation ETFs have been less impressive.Transportation stocks reside in the cyclical industrial sector, meaning the group is sensitive to economic data and the business cycle. Any inklings of a recession and transportation ETFs and their holdings could be in trouble.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"A drop of at least 30 percent in the railroad stocks would take the S&P industry down to levels not seen since the beginning of 2017. A 20 percent decline in the air freight and logistics industry would bring it to late-2013 lows," reports CNBC. * The 10 Best Stocks to Buy for the Bull Market's Anniversary For investors willing to embrace the cyclical nature of the transportation industry, here are some ETFs to buy.Source: DaveBloggs007 via Flickr iShares Transportation Average ETF (IYT)Expense ratio: 0.43% per year, or $43 on a $10,000 investment.The iShares Transportation Average ETF (CBOE:IYT) is the largest transportation ETF and tracks the aforementioned Dow Jones Transportation Index. As is the case with most transportation ETFs, IYT is heavily levered to engines of the U.S. economy.This transportation ETF allocates nearly 76% of its combined weight to railroad operators, air freight and logistics firms, and trucking companies. IYT's underlying index is home to just 20 stocks and is cap-weighted so there is some concentration risk with this transportation ETF as just two stocks -- Norfolk Southern (NYSE:NSC) and FedEx (NYSE:FDX) -- combine for nearly 21% of the fund's roster.Railroad stocks do not get the notoriety of tech or healthcare stocks, but these companies are pivotal to broader market health. Through late February and into early March, a major railroad index posted eight consecutive losing days, prompting some traders to ponder about the near-term health of transportation ETFs and equities.Source: Shutterstock SPDR S&P Transportation ETF (XTN)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.Next to the aforementioned IYT, the SPDR S&P Transportation ETF (NYSEARCA:XTN) is one of the legacy transportation ETFs.XTN is just over eight years old and "seeks to provide exposure to the transportation segment of the S&P TMI, comprises the following sub-industries: Air Freight & Logistics, Airlines, Airport Services, Highways & Rail Tracks, Marine, Marine Ports & Services, Railroads, and Trucking," according to State Street. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 XTN is an equal-weight ETF, unlike IYT, which is a cap-weighted ETF. Typically, industry funds with different weighting methodologies show significant divergences in performance over the years, but over the past the three years, these two transportation ETFs have moved mostly in lockstep with each other.Source: amanda kelso via Flickr (Modified) US Global Jets ETF (JETS)Expense ratio: 0.60% per year, or $60 on a $10,000 investment.The US Global Jets ETF (NYSEARCA:JETS) is the only dedicated airline ETF trading in the U.S. JETS is up 5% this year, which is almost impressive when considering that oil is one of 2019's best-performing commodities. Airline stocks are often inversely correlated to oil prices because fuel is one of that industry's largest input costs.The four largest U.S. carriers -- Delta Airlines Inc. (NYSE:DAL), United Continental Holdings Inc. (NYSE:UAL), American Airlines Group Inc. (NASDAQ:AAL) and Southwest Airlines Co. (NYSE:LUV) -- combine for nearly 48% of JETS's roster.The exposure JETS provides to the largest U.S. airlines is potentially beneficial to investors at a time when earnings forecast for some of this transportation ETF's smaller components are disappointing Wall Street.Earlier this month, "Delta said it was on track meet first-quarter guidance, including 4% to 6% revenue growth, and reaffirmed its full-year forecast. United said its first-quarter revenue should come near the midpoint of prior guidance and reaffirmed its 2019 and 2020 earnings-per-share forecast," reports Barron's. First Trust Nasdaq Transportation ETF (FTXR)Expense ratio: 0.60% per year, or $60 on a $10,000 investment.The First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) debuted in September 2016, making it one of the newer transportation ETFs on the market. FTXR follows the Nasdaq U.S. Smart Transportation Index and uses a unique weighting methodology not seen on legacy transportation ETFs.FTXR's underlying index employs growth, value and volatility metrics in its stock selection process. Components in the index are weighted based on their scores over those three factors. Eight industry groups are represented in this transportation ETF, but airline and railroad stocks combine for over 56% of FTXR's roster. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio Eight of the fund's top 10 holdings hail from those two industry groups. The heavy weight to airlines (over a third of the fund's weight) is restraining FTXR's 2019 performance somewhat as the transportation ETF is up just 7%.Source: Shutterstock SPDR Kensho Smart Mobility ETF (XKST)Expense ratio: 0.46% per year, or $46 on a $10,000 investment.While some of the transportation ETFs highlighted here use unique weighting schemes, the SPDR Kensho Smart Mobility ETF (NYSEARCA:XKST) truly fits the bill as a departure from the traditional transportation ETF. This is the transportation ETF to buy for investors looking for disruptive technology and growth potential.In other words, XKST is not transportation ETF for investors looking for exposure to airline, freight and railroad stocks. XKST provides exposure to "autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems," according to State Street.XKST's 56 holdings span 15 industry groups, eight of which are from the technology sector. For investors looking to future-ize their transportation exposure, XKST makes a lot of sense."Technological innovation is fundamentally changing the concept of travel and transportation," said State Street. "A new era of transportation that could move people and goods faster, cheaper and more efficiently is emerging through autonomous vehicles, mobility sharing and drones. This innovation, illustrated below, will not only transform our way of life, but also provide a secular growth opportunity for investment portfolios."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post 5 Transportation ETFs to Buy for a Road to Profits appeared first on InvestorPlace.