FTXL ETF

Semiconductor ETFs have been on a remarkable rally in the past month post earnings.

Launched on 09/20/2016, the First Trust NASDAQ Semiconductor ETF (FTXL) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.

Some well-known players in the semiconductor space will report earnings in the coming weeks. Let's delve into how semiconductor ETFs are poised.

The Fed kicked off the new rate cycle era, infusing strong optimism into the stock market, with the technology sector being the biggest winner.

The First Trust NASDAQ Semiconductor ETF (FTXL) made its debut on 09/20/2016, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.

If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the First Trust NASDAQ Semiconductor ETF (FTXL), a passively managed exchange traded fund launched on 09/20/2016.

The semiconductor sector has been badly beaten down in the latest market rout. A spate of weaker-than-expected earnings reports from well-known players in the space also dampened confidence.

FTXL has outperformed the market thanks to AI hype, but its expensive valuation poses downside risks. FTXL has strong performance in 2023 and 2024, with a favorable outlook through 2026 driven by AI hype. Semiconductor industry typically goes through inventory corrections every 3-4 years, signaling potential significant declines in FTXL during corrections.

While the AI boom has been favoring the semiconductor rally, a rebound in PC sales will provide chip-makers another boost.