Today in our ETF Fund Flows recap, we speak about position trimming in SMH (VanEck Vectors Semiconductor, Expense Ratio 0.36%), with the fund seeing some bloodletting in recent sessions as it pivots near 52 week highs once again.
About $420 million has exited the fund lately after a period of inflows, but the September month-to-date number in terms of net flows is still positive ($143 million in). In early trading this morning, the fund rose as high as $92.84 ($92.90 is the 52-week high), but has reversed somewhat sharply after the first hour to as low as the $92.40 level, now showing some red on the day.
SMH is the second largest “Semiconductor” tracking ETF in the U.S. listed marketplace, with about $954 million in assets under management, behind the $1.2 billion SOXX (iShares PHLX Semiconductor, Expense Ratio 0.48%), which has also seen net inflows in the month of September ($113 million in).
Given the recent selling in SMH and failure to reach a new 52-week high, we have to be mindful of “Bear” funds in this segment, specifically SOXS (Direxion Daily Semiconductor Bear 3X, Expense Ratio 1.10%) and SSG (ProShares Ultra Short Semiconductors, Expense Ratio 0.95%). As one might expect, both funds are toiling near 52-week lows, but if any selling pressure sticks here going into corporate earnings season in the Semi space, these ETFs may attract volume and attention.
The top five holdings in SMH are as follows, with their expected earnings release dates in parentheses 1) TSM (10.17%, 10/12 AM), 2) INTC (9.18%, 10/26 PM), 3) AMAT (5.40%, 11/16 PM), 4) NVDA (5.24%, 11/9 PM), and 5) TXN (5.21%, 10/24 PM).
On the other hand, SOXX has a different composition with: 1) TXN (8.29%, 10/24 PM), 2) INTC (8.26%), 3) NVDA (7.94%), 4) QCOM (7.59%, 11/1 PM), and 5) AVGO (7.38%, 11/23 PM).
Interestingly, the “Bull” Semi sister fund to SOXS, SOXL (Direxion Daily Semiconductor Bull 3X, Expense Ratio 1.06%, $376 million in AUM) is the third largest ETF in the Semi segment in terms of AUM size, behind SOXX and SMH, while SOXS is considerably smaller, with only $43 million in AUM and competing Bear ETF SSG only has $5 million in AUM.
The VanEck Vectors Semiconductor ETF (SMH) was trading at $92.56 per share on Friday morning, up $0.10 (+0.11%). Year-to-date, SMH has gained 29.20%, versus a 13.19% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.
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