Top 5 Semiconductor ETFs to Buy in 2022

In this piece we will take a look at the top five semiconductor ETFs to buy in 2022. For a primer on the semiconductor industry and more ETFs, take a look at Top 10 Semiconductor ETFs to Buy in 2022.

5. Direxion Daily Semiconductor Bear 3X Shares (NYSE:SOXS)

The Direxion Daily Semiconductor Bear 3X Shares (NYSE:SOXS) is another ETF for the bearish investor. This fund allows to profit from a downturn in semiconductor prices. It seeks to amplify its daily tracked index performance by 3x, which then leaves space for hefty gains for the careful investor but also opens up room for hefty losses. The Direxion Daily Semiconductor Bear 3X Shares (NYSE:SOXS) consists of companies based in the U.S. and it has $311 million in assets under management.

As is the case with several other semiconductor ETFs, the Direxion Daily Semiconductor Bear 3X Shares (NYSE:SOXS)’s largest holdings also consist of NVIDIA Corporation (NASDAQ:NVDA). Apart from NVIDIA, however, the fund has 7% of its assets tied up in Advanced Micro Devices, Inc. (NASDAQ:AMD). AMD is one of the few companies in the world that is licensed to design and sell chips on the x86 microarchitecture. This results in higher barriers to entry to its markets and limits it to dealing with only one rival, namely the chip behemoth Intel Corporation (NASDAQ:INTC).

Insider Monkey scanned 912 hedge fund holdings for the first quarter of this year to discover that 83 had bought Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares. Out of these, Ken Fisher’s Fisher Asset Management is the firm’s largest shareholder with a $2.6 billion stake.