Rise In Chip Demand Should Boost Semiconductor ETFs

ETFs that track the chip industry could get a boost. Industry executives say they expect the oversupply of chips to decrease as demand picks up, reports Joanne Von Alroth for Investor's Business Daily.

These companies have been dealing with too many memory chips on the market. Industry insiders agree the industry is looking up and stabilizing prices will allow electronics companies to buy more products, thus increasing orders. Some of the semiconductor ETFs riding on the "less is more" theory include:

iShares S&P GSTI Semiconductor (IGW) - up 11% year-to-date

SPDR S&P Semiconductor (XSD) - up 11%

PowerShares Dynamic Semiconductor (PSI) - up 14%

Semiconductor HOLDRs (SMH) - up 16%

ProShares Ultra Semiconductor (USD) - launched in February 2007