Anyone suggest why SMGB has been underperforming these past 6 months? Given its semi-conductor focus it seems to be under-performing the sector. I’ve a small allocation in it but I’m thinking of selling it and moving the proceeds into another ETF that better reflects the considerable growth of semi-conductor/AI stocks.
TIA
Hi @Omian. What benchmark are you using to measure underperformance?
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Seems like its similar to another similar ETF - SEMI. It’s actually out-performed SEMI so not sure what you are querying here?
Do you mean underperformance compared to the whole market? That is different but just suggests Semi conductors haven’t done as well for the last 6 months. It is also up 26.81% YTD… that seems pretty good to me and better than a global fund.
Thanks for your reply, appreciated.
I’ll have a deep-dive when I can. It just seemed a bit anomalous re the tech-driven Global/US indexes performances over 6 months and that of SMGB. Quite possibly weighting and capitalisation are significant.
Thanks again
Possibly due to tarrifs and trade war threats from the US (Trump) dampening semiconductor stock values? Some of the stocks are non-US based and others are US based but rely on a worldwide supply chain. Maybe look for articles/research on the US based ETF SMH, which is similar to SMGB but more widely held/popular - it may give better insight to relative underperformance than trying to look for SMGB specific articles.
I like you have owned a small holding of SMGB for about 6 months and is basically flat over that time, while other technology ETFs like IITU have shot up. If you do find some information yourself please post a link here as well. Would be interested to read.
Just looking, mainly out of my own curiosity, it just seems like some of the big holdings in SMGB have had a torrid last 6 months. The make-up of that ETF compared to IITU is massively different.
Firstly, IITU is 96.7% USA and SMGB is only 75%. USA has dominated this year. Secondly, in terms of sectors, SMGB is 82.6% Industrial and only 5.8% tech. IITU is 54% tech and 42% Industrial.
USA & Tech have been the driver most of the year and especially the last few months, clearly!
Looking at the individual holdings, some of SMGB’s top 10 holdings have had torrid times for the last 6 months. ASML (4th largest holding at 8.2%) is down almost 30%. Qualcomm (7th largest holding at 6.2%) is down 24%. Applied Materials is down 22%. Intel down almost 31%. Micron down 22%.
They are all top 10 holdings in that ETF and have been obliterated over the last 6 months.
i use amundi msci SEMG for my semi conductor holding and its only up 1.5% for last 6 months but +56% ytd and +70% 1 year as per google finance.
imo the sector will rise higher soon mainly due to nvda releasing its new blackwell chips as the etf is 31% nvdia.
i will hold SEMG for another year then revaluate then.