Demand Among Factors That May Drive Semiconductor ETFs

 |  Includes: PSI, SMH, XSD
by: Tom Lydon
Semiconductors have traded in a range recently, and exchange traded funds tracking the sector have kept a low profile.

The impact of Japan’s quake may constrain the semiconductor sector, as the country is rooted in technology and plays a major role in this industry, reports Aude Lagorce for MarketWatch.

A reversal of fortune could be seen, however. Roberta Cowan for Reuters reports that the European chipmakers may see a surge, as demand for smartchips is expected to rise.

Other catalysts for the sector include Texas Instruments’ (NASDAQ:TXN) $65 billion bid for National Semiconductor (NYSE:NSM). This fired up semiconductor ETFs recently.

Some semiconductor ETFs:

  • Semiconductor HOLDRS (AMEX: SMH)
  • PowerShares Dynamic Semiconductors Portfolio (NYSEArca: PSI)
  • SPDR S&P Semiconductor ETF (NYSEArca: XSD)

Semiconductor HOLDRS

(Click chart to enlarge)

Tisha Guerrero contributed to this article.