Semiconductor ETFs Need the Consumer

The industry had been feeling the effects of a global oversupply in the market for memory chips, and the Semiconductor Industry Association estimates that memory makes up only 20% of total semiconductor sales and says that otherwise, the industry is sound.

One technical strategist expressed optimism that the sector can deliver a market-beating performance in the second half of the year.

If Intel’s numbers are an indication, it doesn’t seem out of the question.

Among the semiconductor-centered ETFs that could benefit:

• PowerShares Dynamic Semiconductors (PSI): down 13.4% year-to-date; Intel is 4.9%
• Semiconductor HOLDRs (SMH): down 12.7% year-to-date; Intel is 21.4%
• SPDR S&P Semiconductor (XSD): down 16% year-to-date