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ETF News And Commentary

Sanghamitra Saha

Semiconductor ETF (SMH) Hits New 52-Week High


Trades from $3

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.

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