Seasonal Trends May Support Semiconductor ETFs

The tech sub-sector, though, remains robust and has rallied along with the broader technology sector this year on the back of strong earnings and growth outlook from companies like Intel, NVIDIA and Texas Instruments.

Investors interested in the sector play have a number of options available. The VanEck Vectors Semiconductor ETF (NYSEArca: SMH) and iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) have been among the leaders of the technology sector’s surge and some market observers believe that trend can continue.

More risk-tolerant traders betting on quick near-term gains for semiconductor stocks can consider the Direxion Daily Semiconductors Bull 3x Shares (NYSEArca: SOXL), which takes the leveraged 300% daily exposure of the PHLX Semiconductor Sector Index. On the other hand, the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS), which provides a -3x or -300% performance of the PHLX Semiconductor Select Index, can act as a bearish bet.

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