After a decline in 2009, the semiconductor exchange traded funds (ETFs) have staged a turnaround in the last half of 2010. Is any momentum left for 2011?
Last year was tough for many sectors, and semiconductors were no exception. But those days may be a distant memory now.
Revenue for the semiconductor industry is up 31.5%, from 2009 lows. The industry grew $71.9 billion in 2010 – the largest single dollar increase for the semiconductor industry in any one year, says Sophia Meng for The International Business Times. The industry at large for semis reached a milestone $300.3 billion. [Semiconductor ETFs Face Choppy Waters.]
It’s been called a landmark year for the sector. Pent-up demand, a rising middle class in emerging markets and a growing global PC market helped keep companies like Intel (NASDAQ: INTC) in solid shape. [Semiconductor ETFs Hit Refresh Button.]
If you’re interested in exposure to semiconductors, check out ETFs like SPDR S&P Semiconductor (NYSEArca: XSD), which is up 24.7% in the last year, or PowerShares Dynamic Semiconductors (NYSEArca: PSI), up 30% in the last year. If you’re really bullish, check out ProShares Ultra Semiconductors (NYSEArca: USD) or Direxion Daily Semiconductor Bull 3x Shares (NYSEArca: SOXL).
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.