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First Trust Nasdaq Semiconductor ETF (FTXL) delivered a 119.6% one-year return, outperforming SOXX and SMH with a distinct, less Nvidia-heavy portfolio. FTXL's factor-driven, cash-flow-weighted methodology produced recent outperformance, but its sustainability post-September rebalance is uncertain given potential portfolio shifts. I rate FTXL a Hold due to high valuation (P/E ~35), a premium 0.60% fee, and the unpredictability of future factor leadership after such an exceptional run.
Baird Financial Group Inc. cut its position in shares of First Trust Nasdaq Semiconductor ETF (NASDAQ: FTXL) by 21.7% in the undefined quarter, according to the company in its most recent disclosure with the SEC. The fund owned 22,264 shares of the company's stock after selling 6,183 shares during the quarter. Baird Financial
Broadcom's AI revenues are surging, but softer guidance has weighed on shares, highlighting ETFs that offer diversified exposure to its growth.
SMH delivered a jaw-dropping year, yet three semiconductor funds quietly left it in the dust by betting on corners of the chip market that most investors completely ignored.
Semiconductor exposure is the most concentrated bet most retirement investors already own without realizing it, because chipmakers dominate the top of both the S&P 500 and Nasdaq-100.
The First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) has been one of the cleanest ways to own the AI buildout without picking a single winner, and holders have been paid handsomely: FTXL is up roughly 76% year to date and about 134% over the last year, closing at $228.
Micron Technology Inc (NASDAQ:MU) is back above the $1,000 mark, extending a 2026 rally that has made the memory-chip stock one of the market's hottest AI trades, keeping its leveraged ETF counterparts firmly in the spotlight.
First Trust Nasdaq Semiconductor ETF (FTXL) remains well positioned to benefit from ongoing AI infrastructure buildout, despite recent underperformance versus software-focused peers. FTXL's holdings in Intel, AMD, Broadcom, and Micron—totaling 36% weight—are poised to outperform as AI inference demand accelerates, favoring CPUs and memory over GPUs. FTXL trades at a 14% discount to SOXX on P/E, with a target price of $268.5, reflecting both valuation upside and exposure to the next AI growth phase.