Semiconductor ETFs have recently been durable performers as semiconductor stocks are rebounding to steady the broader technology sector, but that does not mean the gains are over for this suddenly hot group. However, valuations are rising for chip stocks.
Small-capitalization stocks have attracted a lot of attention on the escalating trade tensions, fueled by fears over a potential slowdown in global growth. Consequently, many anticipated that small-caps could weather the storm as large multi-nationals with a large global footprint suffered from trade disputes.
“With the Invesco S&P SmallCap Information Technology ETF (Nasdaq: PSCT), you don’t have to pick a specific company to get in on the small-cap tech boom,” according to Banyan Hill. “That’s some impressive exposure for a single ETF. It’s practically a one-stop shop for companies with mega-trend potential.”
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