Semiconductor ETFs Facing Choppy Waters | ETF Trends

There’s been a selloff in the semiconductor sector, and exchange traded funds (ETFs) are no exception. Just days into earnings season, semis were flying high. Now they’ve stalled. What gives?

The stock of Intel (NASDAQ: INTC), rival Advanced Micro Devices Inc. (NYSE: AMD) and other chip vendors have been closing lower of late, dragging ETFs down with them. In the last two weeks, funds such as iShares S&P North America Technology-Semiconductors (NYSEArca: IGW) are down as much as 6%.

There are a few things happening here:

The PC industry is of no small importance for the semiconductor sector. Dylan McCrath for ETTimes reports that the PC end market is the single largest end market for semiconductors at roughly 40% of total semiconductor revenue. PC demand is weakening all over, from the United States and China to Europe. [Sector highlight: semiconductors]

For more stories about semiconductors, visit our semiconductors category. You can find all semiconductor ETFs and research them by using the ETF Analyzer:

  • SPDR S&P Semiconductor (NYSEArca: XSD): Intel 4%;
  • iShares S&P North America Technology-Semiconductors (NYSEArca: IGW): Intel 8.4%; AMD 1.8%
  • PowerShares Dynamic Semiconductors (NYSEArca: PSI): Intel 4.8%

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.