As a result, XSD has achieved the top level, up from #3 in our Rank hierarchy. XSD tracks the S&P Semiconductor Select Industry Index and holds 51 stocks in its portfolio. The product provides huge diversification benefits across each security as none of these allocates more than 2.6% of the assets.
However, the fund is less popular and illiquid with AUM of $181 million and has an average daily volume of around 85,000 shares. Expense ratio is the lowest at 35 bps when compared to other semiconductor products in the space.
These two cyclical sector ETFs have been the leaders in the broad market rally this year and have accounted for huge gains so far amid the global turmoil. Given that the bullish trend for these sectors will likely persist for the rest of summer, investors should definitely look to these ETFs or the other cyclical sector funds that have recently seen their Ranks surging to the #1 level.
This article is brought to you courtesy of Sweta Killa.