State Street SPDR S&P Semiconductor ETF

XSD

Market cap $1.75B

The State Street SPDR S&P Semiconductor ETF (XSD) was launched on January 31, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.

The AI trade proved its worth again last year, as tech stocks finished with a more than 22% gain. That led to the sector outperforming the broad S&P 500 for the 11th time in the past 12 years.

State Street SPDR S&P Semiconductor ETF remains a buy, supported by strong momentum and a favorable technical setup. XSD outperformed the S&P 500 by 15 percentage points since July, with a 26% total return and a reasonable 25.1x P/E ratio. The ETF's modified equal-weight structure limits single-stock risk, with top 10 holdings at just 29.3% and a focus on US SMID caps.

Designed to provide broad exposure to the Technology ETFs category of the market, the State Street SPDR S&P Semiconductor ETF (XSD) is a smart beta exchange traded fund launched on 01/31/2006.

If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the State Street SPDR S&P Semiconductor ETF (XSD), a passively managed exchange traded fund launched on January 31, 2006.

ETFs like BITI, EWY, XSD, AMDW, and CNRG have fared well last week on AI momentum, trade optimism and clean energy revival.

XSD ETF provides a balanced exposure to the U.S. semiconductor market. The fund omits the overweight positions in top-tier chipmakers for the benefit of new disruptive technologies. XSD offers no meaningful upside at this point, but the AI market is evolving faster than expected.

AI hyperscaler capex is set to nearly triple to $1.4T by 2027, fueling a multi-year demand wave for semiconductors and infrastructure. Top AI ETFs - SMH, XSD, SOXX, WTAI and SMHX - offer diversified or targeted exposure to leading beneficiaries of the AI infrastructure buildout. All five highlighted ETFs earn Buy Quant ratings, with strong momentum, low expenses, and high liquidity, making them attractive for both short- and long-term investors.

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Semiconductor ETFs like XSD, SOXX and SMH hit 52-week highs as AI mega investments, NVIDIA's Intel deal & quantum contracts fuel sector momentum.