Related: Trouble Ahead for Semiconductor ETFs Despite Rally
“Buoyed by a tech recovery, semiconductors seem to have the ingredients for success; at least if the Standard & Poor’s 500 can remain resilient as it battles strong overhead resistance. If the broad market fails then semis will have a much harder time building on the ground that’s already been won,” according to Barron’s.
ETF investors who are wary of continued weakness in the semiconductor space can turn to inverse or short semiconductor ETF options to hedge against a dip.
For instance, the ProShares UltraShort Semiconductors (NYSEArca: SSG) takes the -2x or -200% daily performance of the Dow Jones U.S. Semiconductors Index and the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS) provides a -3x or -300% performance of the PHLX Semiconductor Select Index.
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VanEck Vectors Semiconductor ETF
