The Global X Semiconductor ETF (ASX: SEMI) is the most concentrated and highest-conviction AI infrastructure play available to Australian investors on the ASX. It tracks the Solactive Global Semiconductor 30 Index, a deliberately tight portfolio of ~30 global semiconductor leaders spanning chip design, manufacturing, and equipment. The top five holdings are TSMC 10.2%, ASML 9.2%, Broadcom 9,0%, NVIDIA at 8.5%, and Micron 7.8%.
The performance of this ETF has been exceptional, a total return of around +117% over the past year, and an average annual return of 28.3% since the fund’s August 2021 inception. The results illustrate how central the semiconductor Supercycle has been to the AI buildout story. Being locally domiciled also spares Australian investors the W-8BEN paperwork that comes with holding US-listed equivalents like SOXX directly, a small but real practical advantage.
However, its important to recognise the concentration risk. SEMI is a high-conviction instrument positioned for upside when the AI infrastructure cycle is in full swing, but not the kind of fund you set and forget as we saw in 2024/5 when it corrected ~36%, and peaking many months before the global equities plunged lower on “Liberation Day”.
- We don’t want to fight the tape here, the trend is bullish with the ETF set to punch to fresh highs this morning.
MM is bullish towards the SEMI ETF around $27
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