Shares of Micron Technology (MU) jumped on Wednesday after the company reported fiscal second-quarter earnings.
The memory chip maker’s stock climbed 7.5% in midday trading Wednesday after the company said industry fundamentals were starting to improve. Buoyed by the positive news for the industry, Intel Corporate (INTC) rose 7% by Wednesday afternoon.
The company’s results have been burdened by high customer investors, which are showing signs of improvement, Barron’s reported.
The Invesco PHLX Semiconductor ETF (SOXQ) and the Invesco Dynamic Semiconductors ETF (PSI) are two ETFs to consider for investors looking to gain exposure to the semiconductor industry.
PSI and SOXQ each hold Micron, giving the security a 5.0% and 2.9% weight, respectively, according to ETF Database. SOXQ also holds Intel, giving it a weight of 4.3%.
SOXQ is based on the PHLX Semiconductor Sector Index, which measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. Semiconductors include products such as memory chips, microprocessors, integrated circuits, and related equipment that serve a wide variety of purposes in various types of electronics, including personal household products, automobiles, and computers, among others.
SOXQ charges 19 basis points and has $93 million in assets under management.
PSI is based on the Dynamic Semiconductor Intellidex℠ Index, which is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The index is comprised of common stocks of 30 U.S. semiconductors companies.
PSI has accreted $536 million in assets since its inception in 2005. The pricier of the two offerings, PSI, charges 56 basis points.
For more news, information, and analysis, visit the Innovative ETFs Channel.
