Commerce Secretary Howard Lutnick on Monday emphasized the push for a U.S. semiconductor manufacturing boom that would expand domestic chip production and reduce U.S. reliance on foreign supply chains.
Semiconductor Boom On The Way
In a post on X, Lutnick said, "We're bringing back semiconductor manufacturing."
The PHLX Semiconductor Index recently reached its highest level since March 2000, driven by significant investments in AI infrastructure and data centers. On May 6, the index soared 50% over the previous 25 trading days.
The surge has led to record levels of dominance within the technology sector, with the S&P 500 semiconductor industry now accounting for 41.9% of the total market cap of the information technology sector, up from less than 10% in 2013.
ETFs Stand To Benefit
The development could benefit semiconductor ETFs such as VanEck Vectors Semiconductor ETF (NASDAQ:SMH), iShares Semiconductor ETF (NASDAQ:SOXX), SPDR S&P Semiconductor ETF (NYSE:XSD),and First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL).
VanEck Vectors Semiconductor ETF
SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the performance of the most liquid companies in the industry based on market capitalization and trading volume. It has an asset under management (AUM) of $60.6 billion and trades in an average daily volume of about 9 million shares. The ETF charges 0.35% in annual fees.
Benzinga Edge Stock Rankings indicate SMH has a Momentum score in the 94th percentile and maintains a strong price trend in the short, medium and long term.
iShares Semiconductor ETF
SOXX follows the ICE Semiconductor Index and offers exposure to companies that design, manufacture and distribute semiconductors. It has $32 billion in AUM and has an expense ratio of 0.34%. The ETF trades an average of about 7 million shares daily.
Benzinga Edge Stock Rankings indicate SOXX has a Momentum score in the 95th percentile and maintains a strong price trend in the short, medium and long term.
SPDR S&P Semiconductor ETF
With an AUM of $2.7 billion, XSD tracks the S&P Semiconductor Select Industry Index. It has an expense ratio of 0.35% and trades an average daily volume of about 97,000 shares.
Benzinga Edge Stock Rankings indicate XSD has a Momentum score in the 95th percentile and maintains a strong price trend in the short, medium and long term.
First Trust Nasdaq Semiconductor ETF
FTXL tracks the Nasdaq US Smart Semiconductor Index. With an AUM of $2.2 billion, it trades in an average daily volume of 280,000 shares and has an expense ratio of 0.60%.
Benzinga Edge Stock Rankings indicate FTXL has a Momentum score in the 97th percentile and maintains a strong price trend in the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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