Corgi Lithography & Semiconductor Photonics ETF

EUV

Capitalización de mercado USD 387 M

I spent the last two weeks in Australia hanging out with kangaroos and koalas. However, the ETF market didn't take a vacation while I was away.

Optics are emerging as the next AI infrastructure bottleneck. These three ETFs offer diversified exposure to the photonics boom.

I am initiating coverage of the Corgi Lithography & Semiconductor Photonics ETF with a Buy rating, behind an ever-more compelling shift from memory to optics in AI infrastructure. EUV offers concentrated exposure to optics and optical interconnects (~29% weight), avoiding memory-heavy names and Chinese transceiver suppliers, and complements traditional semiconductor funds. Recent regulatory developments and Nvidia's platform evolution favor US and European optics suppliers, with the optics market growing at an infrastructure buildout pace.

Key Takeaways: AI investing is broadening beyond processors to memory and photonics, which address critical data storage and connectivity bottlenecks. Both memory and photonics ETFs offer targeted access to global leaders, but concentrated holdings can amplify both opportunity and volatility.

The Corgi Lithography & Semiconductor Photonics ETF (EUV) has dropped over 20% in a month. EUV offers active, thematic exposure to lithography and photonics, with top holdings like TSMC and ASML, and a competitive 0.35% expense ratio. Despite sector fears of margin contraction from Chinese oversupply, EUV's core holdings remain insulated (IMO), especially ASML's EUV monopoly.

Semiconductor stocks have made investors' fortunes over the past four years, and by extension, semiconductor ETFs turned into the best-performing names.

Optical stocks have emerged as a bountiful play on the artificial-intelligence trade, but Friday's selloff is putting a damper on that momentum.

Corgi Lithography & Semiconductor Photonics ETF is rated a buy for its targeted exposure to critical semiconductor supply chain segments and competitive holdings. EUV's top holdings—TSM, ASML, and LRCX—offer strong profitability, industry leadership, and technological innovation, underpinning the fund's superior performance outlook. With a 0.35% expense ratio and an estimated valuation edge over peers, EUV provides cost-effective, actively managed access to semiconductor growth drivers.