Global Semiconductor Competition is Helping This ETF Surge

The global competition in the semiconductor industry, namely the U.S. and China, is helping to heat up the Direxion Daily Semiconductor Bull 3X ETF (SOXL). The fund is already up over 100% with momentum squarely on its side.

With technology powering the world, semiconductors are necessary to power technology. As such, various countries are vying for semiconductor dominance in what resembles a global arms race for the best that technology has to offer.

“The chipmakers power much of the world’s technology, making it possible for loved ones to talk face-to-face from across an ocean or for Wall Street to move billions of dollars in the blink of an eye,” an article said.

While the two top economic superpowers are in the forefront of the semiconductor battle, other countries from around the globe are adding to the competitive landscape. Health competition in the industry can certainly help breed innovation, which will keep the semiconductor sector flourishing.

“Never has the sector been more competitive, with more than 750 companies vying globally to build the insides of the next hot device or power future megacomputers,” the article added. “Investors will find it tricky to navigate the sector.”

An Additional Play on AI, Robotics

With semiconductors playing an increasing role in the growth of AI and robotics, another fund to consider is the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT). The fund is also having a good year, rising over 80% as the world continues to rely more heavily on disruptive technology like AI and robotics.

At some point, the disruptive technologies will become the norm. From determining consumer behavior to actually serving consumers in restaurants, AI and robotics will penetrate all business sectors at some point, providing investors with a growth opportunity they can take advantage of now while it’s still in the early adoption phase.

As for UBOT, it seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence.

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