Apple (NasdaqGS: AAPL), Google (NasdaqGS: GOOG) and a few other sexier, “new tech” companies are the names that usually captivate investors’ attention when it comes to technology stocks and ETFs. However, a familiar sub-sector has helped lead tech’s recent resurgence.
In the past three months, the PowerShares QQQ (NasdaqGM: QQQ) is up almost 8%. Over the same time, shares of Intel (NasdaqGS: INTC) have surged 19.5% and it almost feels like that is the quietest almost 20% gain the span of 90 days that has come along in quite a while. Quiet or not, Intel and chip stocks are helping drive a resurgence in semiconductor ETFs. [Semiconductor ETF Bouncing Back]
So sturdy have been semiconductor ETFs that opting for any of the three of the group’s largest funds has treated investors to significant out-performance over QQQ. Since March 19, the three dominant chip ETFs have returned an average of 11.6%. [ETF Spotlight: Semiconductors]
The leader of the pack over that time has been the iShares PHLX SOX Semiconductor Sector Index Fund (NasdaqGM: SOXX). Almost 12 years old, SOXX holds 31 stocks with the ETF’s top-10 holdings combing for almost 61.6% of the ETF’s weight.
Before getting too excited about chip stocks, it is worth noting there have been some tepid performances over the past three months, including a slight loss for SOXX top-10 holding Broadcom (NasdaqGS: BRCM). However, Intel and Applied Materials (NasdaqGS: AMAT) are the ETF’s two largest holdings, combing for 17% of the fund’s weight. Applied Materials has surged 22% over the past 90 days, teaming with Intel to drive SOXX higher.