This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Earnings Season Drives 4 Chip ETFs

Stocks in this article: IYM TXN SMH SOXX XSD PSI

NEW YORK ( TheStreet) -- As I explained in yesterday's piece, "Five ETFs to Watch this Week," this week's busy earnings calendar is laden with companies hailing from across the technology industry. I highlighted the iShares Dow Jones U.S. Technology Sector Index Fund (IYW) as a product investors can turn to in order to gain adequate exposure to a number of these companies. However, hands-on investors can also tailor their IT exposure to suit their specific desires through a variety of subsector tech ETFs.

For instance, investors can use ETFs to home in on the semiconductor industry, which will be a major focus of this week's earnings-related press. Texas Instruments (TXN) kicked things off on Monday and throughout the rest of the week, three other major names hailing from this region of the tech market will follow suit. Companies include Intel (INTC), Qualcomm (QCOM), and Advanced Micro Devices (AMD).

Fellow members of the chipmaker sector, Broadcom (BRCM), and Nvidia (NVDA) are slated for late April and May respectively.

Semiconductors have become interesting to watch in recent weeks as market commentators and analysts debate the total impact last month's Pacific earthquake and tsunami will have on production. As these companies report their earnings, investors will want to keep a close eye not only on performance, but guidance for the rest of the year.

Four ETFs stand out for investors looking for direct access to the semiconductor industry. While these funds are all designed to target the same slice of the tech sector, each product uses its own unique strategy that may appeal to different types of investors.

Boasting an average trading volume of more than 10 million, the Semiconductor HOLDRs (SMH) is the largest and most liquid option. It is important to note, however, that this fund is noticeably top heavy and therefore vulnerable to security-specific risk. Top holdings, Texas Instruments, Intel, and Applied Materials (AMAT) together account for half of the fund's assets.

The iShares PHLX SOX Semiconductor ETF's (SOXX) market cap weighted index is considerably less top heavy than SMH, making the fund a safer choice for conservative investors looking for exposure to top names. Like SMH, Texas Instruments, Intel, and Applied Materials are among the fund's largest holdings. However, these firms represent less than 25% of its index. In total, SOXX's ten largest positions account for 58% of its assets.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,300.38 +231.51 1.36%
S&P 500 1,995.26 +22.52 1.14%
NASDAQ 4,606.7080 +58.8740 1.29%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs