One of the Biggest Chip ETFs Has Averaged 14% a Year Since 2001 and Just Made 118% in Twelve Months
The semiconductor fund compressed about six years of its normal return into one. Its own history has seen only two runs anything like it.
Overview
The iShares Semiconductor ETF (NASDAQ: SOXX) has returned about 118% over the past 12 months, dividends included. The same fund has averaged 14.2% a year since it launched on July 10, 2001.
Set those two numbers side by side, and the past year starts to look surreal. At the fund's long-run pace, a 118% gain takes about six years to accumulate. Semiconductor investors just collected it in one, as spending on the graphics processing units (GPUs) and infrastructure behind artificial intelligence (AI) boomed.
Details
The fund holds about $43 billion in assets, making it one of the biggest semiconductor funds investors can buy. So plenty of people now own a piece of this run -- and plenty more are likely wondering whether to chase it.
Source
Originally published at www.fool.com.
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