ETF Investing Pick No. 2: This Semiconductor ETF Is White Hot
The semiconductor sector is soaring right now, and for good reason. These tech components are critical in the manufacturing and operation of smartphones, tablets, satellites, TVs, and wearable technology.
Worldwide chip sales reached $26.28 billion in January, an 8.8% increase year over year. And that growth isn’t going to slow down. Research firm Research and Markets forecasts an additional 4.4% in growth through the rest of 2014.
Money Morning Defense & Tech Specialist Michael Robinson recommended SPDR S&P Semiconductor ETF (NYSE Arca: XSD) as a great way to tap into the semiconductor sector boom.
“XSD offers both the upside that comes with the semiconductor boom and the stability that stems from owning a well-run ETF,” Robinson said in April.
Holding some four dozen stocks, it’s an exchange-traded fund that touches a wide swath of the semiconductor industry. XSD includes the most profitable companies in the semiconductor business today: Texas Instruments Inc. (Nasdaq: TXN), Apple Inc. (Nasdaq: AAPL), andIntel Corp. (Nasdaq: INTC).
It also features a number of smaller firms on the cutting edge of next-generation technologies, including First Solar Inc. (Nasdaq: FSLR), Micron Technology Inc. (Nasdaq: MU), andFreescale Semiconductor Ltd. (NYSE: FSL).
And at around $66 per share, Robinson believes XSD is a value buy that allows owners to get in on the massive growth in the tech industry at a remarkably affordable price.