State Street SPDR S&P Semiconductor ETF

XSD

Market cap $3.5B

A share of the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) closed at $226.42 on May 29, 2025.

Equities extend gains as earnings and semiconductors lead markets higher. Consumer confidence remains subdued despite economic resilience.

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.

The State Street SPDR S&P Semiconductor ETF isn't Nvidia-dependent. That's okay, because the ETF is beating some of its well-known peers.

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 current AI-driven CapEx cycle is fueling semiconductor stocks' outperformance while US hyperscalers face mounting balance sheet risks and underperformance. Hyperscalers like Meta, Amazon, and Oracle are trapped in the AI narrative, issuing debt and risking negative free cash flow to sustain AI investments.

Semiconductor ETFs like SOXX offer broad exposure as AI-driven memory revenues are projected to nearly triple in 2026.

The Philadelphia Semiconductor Index is over 50% above its 200-day moving average, a level unseen since 2000. Current overbought conditions are driven by aggressive call buying and gamma squeezes, notably in stocks like Micron and AMD.

The AI semiconductor trade has a passport, and lately it has been stamped more often in Seoul than in San Jose.

Several years ago, semiconductor ETFs were often viewed as a Nvidia (NVDA) story. With Nvidia driving much of the group's growth and performance, some investors questioned the need for broader exposure.