The SEMI is an unhedged ETF that tracks the Solactive Global Semiconductor 30 Index, providing exposure to ~30 of the world’s leading semiconductor companies across the US, Taiwan, South Korea, Europe and Japan. The portfolio is relatively concentrated at the top, with Nvidia (11%), Micron Technology (11%) and TSMC (10%) collectively accounting for almost a third of the fund, giving investors direct exposure to the key beneficiaries of the global AI and semiconductor investment cycle – a very volatile space of late as can be seen by the ETFs more than 30% correction from its June “blow-off” style high.
The SEMI offers unleveraged, pure-play exposure to the global semiconductor industry rather than the broader technology exposure of NDQ and FANG, the Asian tech mix of ASIA, or the leveraged Nasdaq exposure of LNAS. Its portfolio spans chip designers, manufacturers and equipment makers, making it arguably the most direct ETF play on the AI infrastructure buildout and global chip cycle. It provides reasonable diversification within semiconductors without diluting the theme with software and internet stocks, while its 0.45% management fee remains very manageable for a specialist thematic ETF providing exposure to a basket of international shares.
- We are initially targeting the $40 area for the SEMI, or 10-15% above yesterday’s close.
