“Semiconductor firms are more cyclical than other kinds of tech companies,” Morningstar writes in a profile of SPDR S&P Semiconductor. “The sector continually faces high research-and-development expenses and capital costs for manufacturing facilities, short product cycles, and cyclical end-user demand.”
The fund is down 16.8% year to date, compared with an 8.3% decline for the S&P 500.
iShares PHLX SOX Semiconductor Sector
