Amid AI Hype, SOXX Emerges as the New Leader in Chip ETFs.

As semiconductor manufacturers emerge as the biggest winners surrounding the optimism about artificial intelligence, a popular ETF tracking chipmakers has turned into the largest of its kind. Bloomberg Intelligence analyst Rebecca Sin shares her views on "Bloomberg Daybreak: Asia." Follow Bloomberg for business news & analysis, up-to-the-minute market data, features, profiles and more: Connect with us on... Twitter: Facebook: Instagram: ...(read more)

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The Semiconductor industry has been experiencing a huge surge in popularity as technology and innovation continue to propel the world forward. Among the many ways one can invest in this thriving market is through ETFs - exchange-traded funds that provide exposure to an entire basket of semiconductor stocks. Of these, SOXX, or the iShares PHLX Semiconductor ETF, has emerged as a clear leader in recent times, thanks in large part to the hype generated around Artificial Intelligence (AI). As the name suggests, SOXX seeks to provide investors with exposure to the PHLX Semiconductor Sector Index, which tracks companies involved in the design, manufacture and sale of chips - the backbone of most modern-day technology. With over $6.3 billion in assets under management and an expense ratio of just 0.46%, SOXX has long been a favorite among investors looking to capitalize on the semiconductor industry's growth potential. However, it is the recent surge in AI that has pushed SOXX to new heights. Artificial Intelligence is undoubtedly the buzzword of our times, with numerous companies across various industries scrambling to incorporate AI into their operations. For the semiconductor industry, AI represents a major opportunity, with chipmakers like Intel, NVIDIA, and Qualcomm developing specialized products targeted at AI-centric applications. This has led to a significant increase in demand for semiconductor chips, driving up the prices of related stocks and contributing to SOXX's recent success. According to data from Bloomberg, SOXX has surged by over 40% in the past year, outstripping other semiconductor ETFs such as SMH (VanEck Vectors Semiconductor ETF) and XSD (SPDR S&P Semiconductor ETF). In fact, SOXX's performance has been so impressive that it even outperformed the US benchmark S&P 500, which returned a respectable but comparatively lower 15% over the same period. Investors looking to replicate SOXX's success would do well to consider the fund's underlying holdings. As of Feb 19th, 2021, SOXX's top five holdings were NVIDIA, Intel, Qualcomm, Broadcom, and Texas Instruments - all companies leading the charge in AI and related technologies. Furthermore, SOXX's diversified portfolio ensures that investors are not overly exposed to any one particular company, region or segment of the semiconductor industry. In conclusion, while SOXX has been a long-standing favorite among investors looking to invest in the semiconductor industry, its recent success can be attributed to the hype around AI and the related surge in demand for chips. As AI continues to permeate our lives and drive technology forward, it is likely that SOXX will maintain its position as the 'king' of chip ETFs for the foreseeable future. https://inflationprotection.org/amid-ai-hype-soxx-emerges-as-the-new-leader-in-chip-etfs/?feed_id=106758&_unique_id=648691bfe1ed6 #Inflation #Retirement #GoldIRA #Wealth #Investing #Bloomberg #InvestDuringInflation #Bloomberg