Equity: U.S. Semiconductors
With 5 ETFs and over $9.39B in combined AUM, the Equity: U.S. Semiconductors segment provides exposure to the U.S. space with a focus on Information Technology securities.
Year-to-date, the best-performing ETF in the segment is the Invesco Dynamic Semiconductors ETF (PSI), with a total return of 28.82%. Meanwhile, the most popular ETF is the iShares Semiconductor ETF (SOXX) with $7.43BB in assets under management.
Investors should take a look at the iShares Semiconductor ETF (SOXX). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. SOXX tracks a modified market-cap-weighted index of 30 US-listed semiconductor companies. SOXX has an expense ratio of 0.43% and tracks the null.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. Semiconductors segment is 90 out of 100, with the SPDR S&P Semiconductor ETF(XSD) obtaining the highest rating of 93 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.39% per year, with the Invesco PHLX Semiconductor ETF (SOXQ) having the lowest expense ratio, charging investors 0% yearly.
Investors should look for funds with tight tracking, such as the SPDR S&P Semiconductor ETF (XSD), with a 12-month median tracking difference of -0.65%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Semiconductors segment is 84 out of 100, with the iShares Semiconductor ETF(SOXX) obtaining the highest rating of 98 out of 100.
The iShares Semiconductor ETF (SOXX) is the undisputed segment leader when it comes to liquidity. The fund trades 309.96M in daily average volume. Investors should also find ample liquidity in the SPDR S&P Semiconductor ETF (XSD), with $9.96M in daily dollar volume.
Use limit orders to trade funds such as the First Trust Nasdaq Semiconductor ETF(FTXL), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters US Semiconductors has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to SOXX. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, PSI follows a Multi-factor strategy and obtains a low Fit score compared with our neutral benchmark.