XSD In The Semiconductor Boom, But Not The Choice I Prefer. Here's Why

Financial Serenity1.48K FollowersFollow5ShareSavePlay(8min)CommentsSummaryState Street SPDR S&P Semiconductor ETF employs an equal-weight approach, heavily tilting exposure toward mid- and small-cap semiconductor stocks.XSD's methodology underweights dominant mega-caps like NVDA and AVGO.However, this diverges significantly from the nature of the sector, in my opinion, which instead develops vertically on a few stocks with distinctive MOATs.I remain bullish on the sector: the market seems to be giving less weight to the rhetoric of Donald Trump, which in March lowered the forward valuations of the sector. Jonathan Kitchen/DigitalVision via Getty Images I am very fascinated by SPDR S&P Semiconductor ETF (XSD) because it positions itself in a highly vertical market concentrated on a few stocks with an unusual approach: equal weight. An approach that brings addedThis article was written byFinancial Serenity1.48K FollowersFollowFinancial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market.

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