The technology sector and related exchange traded funds (ETFs) seems to be losing some of the steam it had gathered toward the end of 2007.

The tech-obsessed Nasdaq composite index is down 8.6% year-to-date. Technology ETFs wrapped up last year about 13% higher, but so far this year are down about 8%. One segment of the technology sector that could be worth another look is the semiconductors, says Joseph Hargett for Forbes.

The Semiconductors HOLDRs Trust (SMH), down 4.7% year-to-date, has been demonstrating an uptrend, seen in a series of higher highs and higher lows. If it keeps heading in this direction, it could attract some attention.

The sector is largely boosted by two companies in particular: Intel (INTC) and Linear Technology (LLTC). Intel posted earnings on April 15 that were in line with analyst expectations, and predicted second quarter review to be higher. Linear’s shares have risen 14% year-to-date.

If sentiment toward the semiconductor sector turns bullish, other ETFs that are poised to rebound are:

• iShares S&P North American Tech Semiconductors (IGW), down 8.8% year-to-date
• PowerShares Dynamic Semiconductors (PSI), down 4.3% year-to-date
• SPDR S&P Semiconductor (XSD), down 5.6% year-to-date

Tags | Technology