28 March 2024: Wealth Product Ideas
Thematic Idea: Semiconductor Supercycle
Market Backdrop:
- Industry faced downturn in 2022-23, but poised for strong rebound
- Fueled by secular demand drivers across verticals
Key Bullish Drivers:
- Surging AI/ML chip demand across industries
- 5G infrastructure buildout
- Automotive/mobility semi needs (ADAS, autonomy)
- Proliferation of IoT devices
- Cloud data center expansions
Improving Supply/Demand:
- Chipmakers adding capacity to meet pent-up demand
- Supply constraints easing as new capacity comes online
Innovation Catalysts:
- Advancements in chip architectures and transistor density
- Specialized chips for AI, crypto, gaming, data centers
- Emerging computing like neuromorphic
Reasonable Valuations:
- Semi stocks at attractive forward multiples
- Bullish catalysts not fully priced in
Fund Name (Ticker) | VanEck Semiconductor ETF (SMH US) |
Description | VanEck Semiconductor ETF (SMH®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Listed Semiconductor 25 Index (MVSMHTR), which is intended to track the overall performance of companies involved in semiconductor production and equipment. |
Asset Class | Equity |
30-Day Average Volume (as of 26 Mar) | 9,606,521 |
Net Assets of Fund (as of 26 Mar) | USD18,380,000,000 |
12-Month Yield | NA |
P/E Ratio (as of 26 Mar) | 51.192 |
P/B Ratio (as of 26 Mar) | 7.159 |
Management Fees (Annual) | 0.35% |
Top 10 Holdings
(as of 25 March 2024)
(Source: Bloomberg)
Fund Name (Ticker) | iShares Semiconductor ETF (SOXX US) |
Description | The iShares Semiconductor ETF seeks to track the investment results of an index composed of U.S.-listed equities in the semiconductor sector. |
Asset Class | Equity |
30-Day Average Volume (as of 26 Mar) | 3,297,316 |
Net Assets of Fund (as of 26 Mar) | US$12,638,636,843 |
12-Month Trailing Yield (as of 29 Feb) | 0.69 |
P/E Ratio (as of 25 Mar) | 33.59 |
P/B Ratio (as of 25 Mar) | 5.61 |
Management Fees (Annual) | 0.35% |
Top 10 Holdings
(as of 25 March 2024)
(Source: Bloomberg)
