Consider this ETF as AMD Closes in on $100 Billion Market Cap

Look out Intel, because there could be a new semiconductor giant as AMD closes in on the $100 billion market cap territory. This could boost ETFs with holdings of AMD.

Per a MarketWatch report, “Advanced Micro Devices Inc.’s stock soared to fresh records Tuesday after another analyst hiked his price target on the chip company, driving it to a market cap just shy of $100 billion.

AMD AMD, -1.68% shares spent Tuesday carving out new intraday records and closed up 9.5% at $85.04 for a new closing record and a market cap of $99.84 billion. The stock’s intraday high of $85.81 put the company at a market cap of more than $100 billion for the first time, and a close of $85.18 would have put AMD just over the $100 billion mark. AMD’s stock last closed at a record $78.20 on July 30, fresh from AMD’s strong earnings and indications that the company’s market share gain from Intel Corp. INTC, -0.45% was quickening.

One ETF to consider in semiconductors is the VanEck Vectors Semiconductor ETF (SMH). The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Listed Semiconductor 25 Index.

The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index. The index includes common stocks and depositary receipts of U.S. exchange-listed companies in the semiconductor industry. Such companies may include medium-capitalization companies and foreign companies that are listed on a U.S. exchange.

  • Highly Liquid Companies: Index seeks to track the most liquid companies in the industry based on market capitalization and trading volume
  • Industry Leaders: Index methodology favors the largest companies in the industry
  • Global Scope: Portfolio may include both domestic and U.S. listed foreign companies allowing for enhanced industry representation

SMH Chart

SMH data by YCharts

Here are a couple more alternatives:

  • iShares PHLX Semiconductor ETF (NasdaqGM: SOXX): seeks to track the investment results of the PHLX Semiconductor Sector Index composed of U.S. equities in the semiconductor sector. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of U.S.-traded securities of companies engaged in the semiconductor business.
  • SPDR S&P Semiconductor ETF (NYSEArca: XSD): seeks to provide investment results that correspond generally to the total return performance of an index derived from the semiconductor segment of a U.S. total market composite index. In seeking to track the performance of the S&P Semiconductor Select Industry Index (the “index”), the fund employs a sampling strategy. The index represents the semiconductors segment of the S&P Total Market Index (“S&P TMI”).

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