Bringing you live news and features since 2006 

ETF Securities launches semiconductor ETF in Australia

RELATED TOPICS​

Index provider Solactive writes that Australia has now seen the launch of an ETF based on semiconductors, the first such product in the country.

Solactive writes that the ongoing semiconductor shortage caught many businesses off guard as production of chips slowed down during the global pandemic. “From domestic appliances to cars, almost every technological device relies on semiconductors, and the global shortage has taken its toll: car manufacturers idled their production lines or – on the more creative side – utilised dummy chips in their production, which will be replaced by functional semiconductors as soon as the capacity allows it, while there is a shortage, demand for semiconductor technology increases in the light of a global 5G rollout, interconnectivity, and smarter consumer technology…Australian issuer ETF Securities now releases an ETF, the ETFS Semiconductor ETF (ASX: SEMI). This fund is the first Australian passive investment product in that space.”

In its market forecast, the World Semiconductor Trade Statistics (WSTS) expects the worldwide semiconductor market growth to rise from 6.8 per cent in 2020 to a staggering 19.7 per cent in the year 2021, which corresponds to a market size of USD 527 billion. For 2022, WSTS expects growth by 8.8 per cent.] Enjoying tailwinds, companies active in the semiconductor business can be expected to outperform for the foreseeable future.

The ETF tracks the Solactive Global Semiconductor 30 Index, which is a representation of 30 companies active across the semiconductor value chain. Eligible companies must be part of the Solactive GBS Global Markets Semiconductor All Cap USD Index and classified – by a common industry classification system – in the semiconductors industry, or semiconductor equipment and services and semiconductor manufacturing subsectors. Furthermore, companies must have their primary listing in one of the countries that are part of the Developed Markets – as defined by the Solactive Country Classification Framework – or in South Korea or Taiwan. All eligible securities are ranked based on their free float market capitalisation in descending order, and the top 30 ranked securities are selected for index inclusion.

Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “Semiconductors serve as the heart and soul of every electric device, and with a growing need for chips to fuel our future smart economy, companies active in this megatrend now are well positioned for future growth. ETF Securities realised the vast potential of this industry, which will accompany us for the next decades to come. We are excited to be part of this thematic ETF release in Australia, and we look forward to launching more innovative products with ETF Securities soon.”

Kanish Chugh, Head of Distribution at ETF Securities, comments: “We are delighted to have partnered with Solactive to bring to market the ETFS Semiconductor ETF. At ETF Securities we have a focus on identifying and developing products that enable our clients to benefit from rapid technological advances across the globe. Observing the rise in prominence of the semiconductor across a vast array of industries from gaming to automobiles, this product addresses a gap in the Australian market for investors wanting exposure to this growing sector.”

The ETFS Semiconductor ETF (SEMI) started trading on August 31st, 2021, on ASX.
 

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by