Sunday, December 23, 2012

ETF Strategies for a Semiconductor Turnaround

The global market meltdown left no sector untouched, and semiconductor exchange traded funds took their fair share of the drubbing. Now there are calls for a comeback. Here’s how you can play along.

Semiconductors are market survivors. To wit:

  • After the sector showed resilience in the months following the market’s meltdown and companies have returned to positive earnings, analysts now feel that it has good long-term prospects, Rothman Research on CNN Money reports.
  • The contract prices of 12-inch wafers are heading up. On average, prices for 12-inch wafers could go up as much as 10%-20% in the second quarter after going up 10% in the fourth quarter and 5% in the first of this year, Ingrid Lee for DigiTimes reports. [Semiconductor Sector Looking Up.]
  • Meanwhile, Michael McManhus for DigiTimes reports that global e-book shipments are on the rise and could increase to as much as 28 million units by 2013. The industry is set to see a major shakeup in 2010, as established content providers such as Barnes & Noble become more competitive and niche players in Europe grab a piece of the rapidly expanding market. Nonetheless, this should also up the demand for chips and wafers in the year to come. [4 Reasons Semiconductor ETFs Are On Track.]
  • SPDR S&P Semiconductor (XSD)

  • iShares S&P North America Technology-Semiconductors (IGW)

  • PowerShares Dynamic Semiconductors (PSI)

  • Ultra Semiconductor ProShares (USD)

No comments :

Post a Comment