33.86 0.00 (0.00%)
After hours: 4:15PM EDT
|Bid||32.01 x 800|
|Ask||35.00 x 1000|
|Day's Range||32.82 - 33.87|
|52 Week Range||28.27 - 44.69|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-21.01%|
|Beta (5Y Monthly)||1.43|
|Expense Ratio (net)||0.95%|
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.
ROBO Global, the exchange traded funds issuer behind the Robo Global Robotics and Automation Index ETF (NYSE: ROBO ), the first dedicated robotics ETF, added to its lineup Tuesday with the debut of the ...
Robotics and artificial intelligence are a quickly developing innovation that touches upon a number of industries across the world, and investors can gain exposure to this growth opportunity through a targeted exchange traded fund strategy.
The Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ), which started trading in Sep. 2016, is one of the most widely followed exchange-traded funds (ETFs) that specialize in a niche market. If you want to get in on the AI boom, BOTZ ETF might be your easiest entry point.Source: Shutterstock The robotics and AI industry is expected to grow in double digits in the next decade. Analysts expect global AI revenues to grow "$3.2 billion in 2016 to an expected $ 89.85 billion by 2025." Similarly, "by 2022, the size of the surgical robots and artificial intelligence market is expected to be worth 1$8 billion."Robots hoover the floor in our homes, perform surgeries, search for objects underwater, and entertain moviegoers. In general, AI makes it easier the train robots. As automated devices that integrate machine learning, robotics and artificial intelligence enter our daily lives at an increasing speed, the investment theme of these segments become more attractive for the average investor.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTherefore, if you are a long-term investor that is interested in participating in the growth potential of the technological advances, you may want to consider investing in the sector through a fund like the BOTZ. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Here is why: Global Mix of Robotics and AI PlayersBOTZ ETF follows the Indxx Global Robotics & Artificial Intelligence Thematic Index. This index, which has been around since 2010, divides the robotics and artificial intelligence sector into four sub-themes: * Industrial Robots and Automation * Unmanned Vehicles and Drones * Non-industrial Robotics (such as application in agriculture, healthcare, or entertainment) * Artificial IntelligenceThe fund has 37 exchange-listed stocks in its portfolio -- with the top 10 companies accounting for 60.69% of the holdings. In less than three years, assets under management have reached $1.7 billion. The fund's expense ratio stands at a reasonable 0.68% or $68 per $10,000 invested.BOTZ has a high level of exposure to Japan (49% of assets), followed by the U.S. (31%) and Switzerland (10%). In terms of sector concentrations, industrials top the list (45%), followed by information technology (33%), and health care (14%). Other industries include consumer discretionary, energy, and communication services.Intuitive Surgical (NASDAQ:ISRG), the developer of robotics-assisted surgical systems that specialize in minimally invasive surgical procedures, has the highest weighting among the holdings of the BOTZ ETF.Next is Keyence Corp NPV (OTCMKTS:KYCCF), which develops machine vision systems and fiber optic sensors, followed by Mitsubishi Electric Corporation (OTCMKTS:MIELY), which specializes in manufacturing robots. As a general rule, the companies in the fund derive at least 50% of their revenues from robotics or AI industries. Short-term Technical AnalysisThe 52-week range of BOTZ ending April 18 has been $24.54 and $16.01. Year-to-date, BOTZ is up over 27%. So, in the next few weeks, there might be some profit taking in the fund.As a result of the recent impressive run-up in the price, short-term technical indicators have become somewhat over-extended. Investors who pay attention to short-term oscillators should note that Visa's technical message has also become "overbought."In April and May, BOTZ could trade sideways for several weeks, and even have a pullback toward $20 or even $19 level, where the stock is likely to find major support.If you already own BOTZ ETF, you might want to hold your position. However, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 5-7% below the current price point.If you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a three-month time horizon. The Bottom Line on Robotics and AI StocksIf you are an investor with a long-term focus, then a thematic ETF such as BOTZ would give you a good and potentially rewarding exposure to robotics and artificial intelligence stocks.In addition to the BOTZ ETF, you may also want to learn more about two other similar funds, namely, the ROBO Global Robotics & Automation Index ETF (NASDAQ:ROBO) and the First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:ROBT).As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post BOTZ ETF Very Well May Be Your Best Artificial Intelligence Play appeared first on InvestorPlace.