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Semiconductor ETF (SMH) Hits New 52-Week High
For investors seeking momentum, VanEck Vectors Semiconductor ETF (SMH - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 76.2% from its 52-week low of $136.10 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SMH in Focus
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. SMH charges 35 bps in annual fees (see: all the Technology ETFs here).
Why the Move?
The semiconductor corner of the broad technology space has been an area to watch lately, following the blockbuster earnings of NVIDIA (NVDA). The stock surpassed $1,000 for the first time ever after the AI chipmaker topped both earnings and revenue estimates and offered a bullish revenue outlook for the current quarter. NVIDIA also spread huge optimism over the global artificial intelligence (AI) boom. Notably, SMH has a 20.5% allocation in NVIDIA.
More Gains Ahead?
Currently, SMH has a Zacks ETF Rank #1 (Strong Buy), suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.