Xtrackers Semiconductor Select Equity ETF

CHPS

Market cap $106M

Xtrackers Semiconductor Select Equity ETF (CHPS) offers diversified semiconductor exposure with a unique ESG-weighted approach and reduced mega-cap concentration. I recommend CHPS with a Buy rating, driven by durable long-term growth prospects in AI, memory, logic, and analog chips. CHPS benefits from top holdings in Micron, SK Hynix, AMD, and Intel, all positioned to capitalize on evolving AI and data center architectures.

Investors on the lookout for potential break out candidates among ETFs can look for a few key factors in charts, global trends, and momentum. Trends, too, can guide investors and advisors to ETFs able to break out.

Some exchange-traded funds offer the safety of diversification at the expense of eye-popping returns. This year, returns are the story, especially at funds that hold big slugs of red-hot chip shares.

Invesco Semiconductors ETF has outperformed the newer Xtrackers Semiconductor Select Equity ETF, delivering a 6.5% total return in under a quarter. PSI's edge stems from its concentrated U.S.-only portfolio, high 78% turnover, and a quant-driven strategy focused on momentum, management, and valuation. CHPS, with a lower 0.15% expense ratio and 25% Asian exposure, follows an ESG-screened, globally diversified approach but lacks PSI's IP-rich U.S. focus.

No longer reserved for niche investment strategies, Environmental, Social, and Governance (ESG) principles are on track to become a major consideration for investors as climate change, geopolitics, and energy usage become increasingly important to companies across sectors. PricewaterhouseCoopers has predicted that ESG will continue to be a dominant feature in exchange-traded fund (ETF) launches.

ARKK, WGMI, HYDR, URA and CHPS top June's rally as easing trade tensions and dovish Fed signals lift the key sectors.

Taiwan Semiconductor Manufacturing (TSM) returned to sales and earnings growth after four consecutive quarters of declines on a year-over-year basis.

Taiwan-based chipmaker Taiwan Semiconductor Manufacturing (TSM) posted its fastest quarterly revenue growth in more than a year.