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“Although the PC end market may well be stalled, the industry stands to continue to benefit from the new releases of a wide variety of technology products, such as Apple’s (NasdaqGS: AAPL) new iPhone and computer hardware makers’ new Ultrabook innovation,” according to Morningstaranalyst Robert Goldsborough. Accordingly, Morningstar recommends the Market Vectors Semiconductor ETF (NSYEArca: SMH) as the best way to gain exposure to semiconductors. The fund holds 25 of the largest semiconductor companies, has a 0.35% expense ratio and trades at 85% of its fair value. Country allocations include U.S. 72%, Taiwain 13%, Netherlands 5%, U.K. 4%, Singapore 3% and Bermuda 2%.
The current bought of weakness in semiconductors is a reflection on the cyclical nature of the sector.
“Also, as the economy continues its long slog toward recovery, we expect corporate spending on IT – and especially on data center technology and networking infrastructure, both of which need semiconductors – to remain strong,” Goldsborough added. ... Continue to read.
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