Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows report, which today looks out money pouring out of the once-hot semiconductor space, ahead of earnings from some heavy-hitters in the sector.
We have seen some outflows in the second largest Semiconductor ETF, VanEck Vectors Semiconductor (NYSE:SMH) recently, which seems to be predicated on the largest weighted member of the ETF, Taiwan Semiconductor Manufacturing (NYSE:TSM), reporting quarterly earnings recently. About $370 million has left the fund lately on heavy trading volume, and on a bit of a swoon in the sector, and we point out that the second highest weighted member, Intel Corporation (NASDAQ:INTC), is slated to report earnings 4/27, so there may be additional volatility in this fund in the next several weeks.
Leveraged plays like the Direxion Daily Semiconductor Bear 3X Shares (NYSE:SOXS) and ProShares UltraShort Semiconductors (NYSE:SSG) may be in focus in the near term as a result — especially if there is additional weakness in the space.
The VanEck Vectors Semiconductor (NYSE:SMH) was trading at $77.19 per share on Tuesday afternoon, up $0.11 (+0.14%). Year-to-date, SMH has gained 7.75%, versus a 4.70% rise in the benchmark S&P 500 index during the same period.
SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #19 of 54 ETFs in the Technology Equities ETFs category.