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Hyperscaler capex is expected to reach roughly $638 billion in 2026, up about 78% from 2025, putting growing pressure on free cash flow and balance sheets. The key risk is not that AI spending collapses, but that capex growth simply slows.
Designed to provide broad exposure to the Technology - Semiconductors segment of the equity market, the State Street SPDR S&P Semiconductor ETF (XSD) is a passively managed exchange traded fund launched on January 31, 2006.
You saw the tweets, the CNBC hits, and the chart that looked like a ladder to the moon.
The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) and the VanEck Semiconductor ETF (NASDAQ:SMH) both offer exposure to semiconductors, yet they are two very different bets.
If you own SPDR S&P Semiconductor ETF (NYSEARCA:XSD) because you wanted “semiconductor exposure,” the fund's 0.35% expense ratio is the least interesting number attached to your account.
Semiconductor ETFs came under pressure Tuesday as a sharp sell-off in South Korea's technology sector spilled over into U.S. chip stocks, raising concerns about the durability of the artificial intelligence-driven rally ahead of a closely watched earnings report from Micron Technology Inc (NASDAQ:MU).
A $10,000 position in the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) at the close on Thursday was worth roughly $8,873 by Friday's close, and the people who got there did not own a single share of the stock that supposedly caused it.
The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) and the iShares Semiconductor ETF (NASDAQ:SOXX) look like interchangeable ways to own the chip cycle, but they differ in one fundamental way.