ETF Strategy to Play Technology & Semiconductor Sectors

More direct approaches to chip makers among ETFs include the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) and the iShares PHLX Semiconductor ETF (NasdaqGM: SOXX). However, declining motherboard shipments could weight on chip stocks and the aforementioned ETFs.

“Despite Intel, AMD and Nvidia having all launched new processor or graphics chip products for the first quarter, motherboard players continue to suffer decreased shipments in the quarter and demand is also unlikely to pick up in the second, according to sources from the upstream supply chain,” reports DigiTimes.

Traders looking to make bearish bets on chip ETFs can consider the ProShares UltraShort Semiconductors (NYSEArca: SSG), which 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), which provides a -3x or -300% performance of the PHLX Semiconductor Select Index.

“Because of weak graphics card demand especially from China, players have already started cutting prices for their GTX 1060 (starting US$249) and GTX 1070 (starting US$379) graphics card to stimulate demand,” reports DigiTimes.

For more news and strategy on the Technology market, visit our Technology category.