Proprietary Data Insights
Financial Pros’ Semiconductor ETF Searches in the Last Month
The Key to AI Tech
Artificial intelligence is the hot topic of 2023.
Semiconductors are essential to AI technology. They’re the hardware upon which AI algorithms and software operate.
That’s most likely why there’s been a sudden surge in semiconductor interest from financial pros, according to the latest search data from Trackstar, our proprietary sentiment indicator.
But instead of an individual stock, they’ve set their eyes on the iShares Semiconductor ETF (SOXX), which holds a basket of some of the most compelling semiconductor stocks on the market.
Key Facts About SOXX
The ETF seeks to track the investment results of an index of all U.S.-listed equities in the semiconductor sector.
It offers investors targeted access to domestic semiconductor stocks.
The top 10 assets in the portfolio make up 57.7% of its weight:
Of SOXX’s 30 positions, 80.7% are semiconductor companies and 19.1% are semiconductor equipment companies. The remaining .18% is cash and/or derivatives.
Over the last five years, SOXX’s cumulative return has been 117.3%, including dividends. Since its inception, it has returned 535.1%.
Investors seeking a targeted investment in semiconductors via ETF have several options. Some of the more notable, according to Trackstar search data, are:
SOXL is a leveraged ETF, which makes it unsuitable for investing. It’s better for trading.
SMH includes non-U.S. semiconductor companies like Taiwan Semiconductors (TSM).
XSD has a broader portfolio. Its second-largest holding is First Solar (FSLR).
PSI is the most similar to SOXX.
Annual Dividend Yield
Five-Year Cumulative Performance
Our Opinion 8/10
Despite all the economic uncertainty, semiconductors should remain in high demand due to their main uses in areas such as IT, consumer electronics, automotive, healthcare, aerospace and defense, energy, and emerging technologies like AI and machine learning.
Investing in SOXX is a great way to gain exposure to the semiconductor space.
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