SOX Index New Show of Strength Only Above 3,600

Prices, after having risen towards the end of July to a peak of 3,875 points, immediately underwent a rapid correction and fell back towards 3,300 points.

The holding of this last level is particularly important as it may favour a reaccumulative phase and create the conditions for a recovery.

A new demonstration of strength will come when 3,600 points are exceeded, even if a breakout will still have to face a first obstacle in the 3,695-3,705 area, a second barrier at 3,745-3,750 points and a third resistance in the 3,855-3,875 points.

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Dangerous instead is a descent below 3,300 points because may trigger a rapid correction that will have a first target in the 3,235-3,220 area and a second target at 3,140-3,130 points.

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The following ETFs can be used to invest in the semiconductor sector:

Amundi MSCI Semiconductors ESG, ISIN LU1900066033. This ETF replicates the performance of large- and mid-cap companies (from 23 developed and 24 emerging markets) active in the semiconductor industry. The equities included are filtered according to ESG (environmental, social and corporate governance) criteria. The ETF, which has assets under management of 129 mln euro and which provides for the physical replication of the underlying, adopts an accumulation policy (with dividends therefore reinvested within the fund). The total expense ratio (TER) is 0.35% per annum.

Ishares MSCI Global Semiconductors ESG, ISIN IE000I8KRLL9. This ETF replicates the performance of large- and mid-cap companies (from 23 developed and 24 emerging markets) active in the semiconductor industry. The equities included are filtered according to ESG criteria. The ETF has €452m in assets under management, physical replication of the underlying (via a swap), and an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.35% per annum.

VanEck Semiconductor 10% Capped ESG, ISIN IE00BMC38736. This ETF replicates companies from around the world, traded in the United States, that are active in the semiconductor industry. The equities included are filtered according to ESG criteria. The maximum weighting of an individual company within the index is limited to 10 per cent. This ETF has €920m in assets under management, physical replication of the underlying and an accumulation policy (with dividends reinvested within the fund). The total expense ratio (TER) is 0.35% per annum.

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