“Also, as the economy continues its long slog toward recovery, we expect corporate spending on IT – and especially on data center technology and networking infrastructure, both of which need semiconductors – to remain strong,” Goldsborough added.
According to the Semiconductor Industry Association, industry sales expanded in the low single digits in 2011 as demand for tablets and PCs increased. The association projects continued improvements through 2012.
The other three semiconductor ETF options include:
- SPDR S&P Semiconductor ETF (NSYEArca: XSD): 0.35% expense ratio.
- iShares PHLX SOX Semiconductor Sector Index Fund ETF (NSYEArca: SOXX): 0.48% expense ratio.
- Powershares Dynamic Semiconductors ETF (NSYEArca: PSI): 0.63% expense ratio.
For more information on the semiconductor sub-sector, visit our semiconductor category.
Max Chen contributed to this article.