“When you see such a dramatic move so quickly, it’s hard to be insulated,” Bradley Gastwirth, an analyst with ABR Investment Strategy, said in a Wall Street Journal article.
Consequently, market-capitalization-weighted ETFs such as SOXX, which have a large-cap multi-national company tilt, could continue to struggle in a strong USD environment. On the other hand, XSD leans toward smaller companies, including a 37.0% position in mid-caps and 45.1% weight in small-caps due to its equal-weight indexing methodology.
SPDR S&P Semiconductor ETF
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Max Chen contributed to this article.