Dedicated semiconductor ETF launched
ETF Securities has launched its latest thematic exchange traded fund (ETF) focused on semiconductors.
ETFS Semiconductor ETF would invest in semiconductor firms globally including microchip foundries and transistor manufacturers such as Taiwan Semiconductor and Nvidia. It would track the Solactive Global Semiconductor 30 index.
This was the latest in a series of ETFs launched by the firm which targeted specific thematics such as FANG stocks, batteries and biotechnology.
One of the attractive factors of the semiconductor industry, the firm said, was that it had high barriers to entry which gave firms wide moats.
ETF Securities head of distribution, Kanish Chugh, said: “By following megatrends, investors can access high growth opportunities, which are not yet fully captured by conventional sectors or unexpressed by factors. Additionally, they can manage risk by hedging against the disruption that global economic ructions can cause. Correctly identifying and acting on megatrends can offer enormous upside.
“Semiconductors are a key component that are increasingly underpinning the development of many other megatrend technologies.”
There were currently only four ETFs in the Australian Core Strategies universe which had exposure to semiconductors, according to FE Analytics.
These were BetaShares Asia Technology Tigers ETF (20.6%), BetaShares Global Robotics and Artificial Intelligence ETF (9.4%), VanEck China New Economy (4.7%) and BetaShares Global Energy Companies ETF Currency Hedged (2.9%).
The best-performing fund out of the four over one year to 31 August, 2021, was the Global Robotics and Artificial Intelligence ETF which returned 35%.
AUTHOR
Laura Dew
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