Given the huge rally in S&P 500 stocks like Sandisk (SNDK) this year, it's no surprise semiconductor ETFs are thriving. But they're getting competition from oil ETFs.
Four of the top 10 actively traded nonleveraged ETFs this year are oil and energy related, says Morningstar Direct. That's exactly the same number of semiconductor ETFs that make the cut. In fact, $2-billion-in-assets United States Oil (USO) returned 74% this year, outperforming the 64% return of the top semiconductor ETF, First Trust Nasdaq Semiconductor (FTXL).
And shares of Marathon Petroleum (MPC) are up 90% this year. That outstrips the 2% gain by AI semiconductor juggernaut Nvidia (NVDA).
Unique trends are driving oil and semiconductor ETFs this year. And oil has gotten the upper hand in the past month.
"Oil's recent run is due to geopolitical risk premiums from Iran tensions and tech valuation digestion. Escalating war risks in the Middle East create immediate supply-shock fears, pushing oil commodity ETFs higher," said Todd Rosenbluth of TMX VettaFi. "Concurrently, heightened uncertainty triggers profit-taking in high-valuation growth ***** ets like chips, prompting a short-term rotation into traditional commodities."
#year #sandisk
Four of the top 10 actively traded nonleveraged ETFs this year are oil and energy related, says Morningstar Direct. That's exactly the same number of semiconductor ETFs that make the cut. In fact, $2-billion-in-assets United States Oil (USO) returned 74% this year, outperforming the 64% return of the top semiconductor ETF, First Trust Nasdaq Semiconductor (FTXL).
And shares of Marathon Petroleum (MPC) are up 90% this year. That outstrips the 2% gain by AI semiconductor juggernaut Nvidia (NVDA).
Unique trends are driving oil and semiconductor ETFs this year. And oil has gotten the upper hand in the past month.
"Oil's recent run is due to geopolitical risk premiums from Iran tensions and tech valuation digestion. Escalating war risks in the Middle East create immediate supply-shock fears, pushing oil commodity ETFs higher," said Todd Rosenbluth of TMX VettaFi. "Concurrently, heightened uncertainty triggers profit-taking in high-valuation growth ***** ets like chips, prompting a short-term rotation into traditional commodities."
#year #sandisk
2 days ago
