For investors seeking momentum, VanEck Vectors Semiconductor ETF (SMH - ETF report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 54.9% from its 52-week low price of $45.03/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 on where it might be headed:
SMH in Focus
SMH focuses on companies into semiconductor production and equipment. SMH charges investors 35 basis points a year in fees and has top holdings in Intel Corp, Taiwan Semiconductor and Qualcomm (see all technology ETFs here).
Why the Move?
Within the broader tech space, semiconductor – the value-centric traditional tech area – has an upper hand thanks to a still-edgy investing backdrop. Higher demand from emerging technology applications like tablets and smartphones are tailwinds to the space amid still-subdued PC shipments.
More Gains Ahead?
Currently, SMH has a Zacks ETF Rank #2 (Buy). The fund has a positive weighted alpha of 44.60. A positive weighted alpha hints at more gains.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>