Advancement within the technology industry is going to be enhanced by semiconductors which will also expand the U.S. advancement in energy efficiency. The related investments and exchange traded funds (ETFs) could be set to advance as well.The semiconductor technologies are so important to energy efficiency within technology that consumer’ electric bills could be reduced with the help if investments and policies. According to Tech Journal South the U.S. economy could expand by more than 70% through 2030 and still use 11% less electricity than it did in 2008.

According to the same report, today we use the same technologies used in 1976, and estimate that the entire family of semiconductor-enabled technologies generated a net savings of about 775 billion kilowatt-hours (kWh) of electricity in the year 2006 alone.

The Philadelphia Semiconductor Index or SOX, the tech industry at large is in a tailspin, due to the drop in this index. Bill Luby for Seeking Alpha reports that the SOX has long been considered a leading indicator, not just for technology firms but also for the market in general.

The health of the semiconductor industry affects the tech cycle and is an early indicator of what is in store for tech.

• PowerShares Dynamic Semiconductors Portfolio (PSI): up 5.1% year-to-date

• iShares S&P GSTI Semiconductor Index Fund (IGW): up 14.3% year-to-date

Tags: IGW, PSI, Sector ETFs, Semiconductors, Technology