Source: Zhitong Finance and Economics
According to statistics, since the beginning of this year, semiconductor ETF has had an inflow of about $6.8 billion, exceeding $5.2 billion in 2021 and $2.1 billion in 2020.
Investors are pouring into the semiconductor stock ETF, betting that the semiconductor industry will rebound from supply chain hurdles and chip shortages that have dragged down share prices.
According to data compiled by Bloomberg, there have been inflows of about $6.8 billion into semiconductor ETF since the beginning of this year, surpassing $5.2 billion in 2021 and $2.1 billion in 2020.
This shows investors' confidence that the industry will recover from the supply chain chaos caused by the epidemic. But repeated outbreaks could worsen the problem. IShares semiconductor ETF on the Philadelphia stock exchange is down 21% so far this year, more than three times the decline of the s & p 500.
Philadelphia Semiconductor (yellow) and S & P 500 (black) index ups and downs (source: Bloomberg)
"given the recent macro environment, it makes sense for the index to underperform the market," said Ross Mayfield, an investment strategist at Baird, an investment bank. But people believe that the story of long-term growth, especially in the context of supply chain shortages this year, these ETF have become the focus of attention. "
Capital inflow trend of VanEck Semiconductor Index
Although the two funds with the largest assets$iShares Philadelphia Exchange Semiconductor ETF (SOXX.US) $和$VanEck Semiconductor Index ETF (SMH.US) $Both have fallen more than 20 per cent so far this year; but so far this year, the two ETF have recorded inflows of $137 million and $2.5 billion.
Demand for semiconductors remains high, and sales in the semiconductor industry have grown by more than 20% a month for nearly a year. Kevin Kelly, chief executive of Kelly ETF, said the decline in the stock market had also made valuations more attractive.
"because semiconductors are a collection of demand drivers for a variety of topics, such as electric vehicles, meta-universe and cryptocurrencies, this area is a long-term holding target for investors," Kelly said. If there is a cyclical industry where new capital can be put into operation, semiconductors seem to be an interesting industry worth allocating in today's market. "
While the market remains confident about the semiconductor industry, Frank Cappelleri, a strategist at Instinet's trading division, said the two largest semiconductor ETF may not see any improvement in the short term.
"normally, the inflection point does not occur until market sentiment deteriorates," Cappelleri said. This may not necessarily happen now, but persistent weakness from now on may eventually change the traffic data. "
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