Market Vectors Semiconductor ETF (NYSEARCA:SMH) — This popular ETF seeks to replicate the price performance of the Market Vectors US Listed Semiconductor 25 Index. In the past 12 months, SMH has appreciated 35%. Due to its performance and relatively low management fee of 0.35%, Morningstar rates it a four-star fund.
Many of the companies held in SMH are mid caps and ADRs. The top holdings include Intel Corporation (NASDAQ:INTC), Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM), ASML Holding NV (ADR) (NASDAQ:ASML), Texas Instruments Incorporated (NASDAQ:TXN), ARM Holdings plc (ADR) (NASDAQ:ARMH), Broadcom Corporation (NASDAQ:BRCM), Applied Materials, Inc. (NASDAQ:AMAT), Micron Technology, Inc. (NASDAQ:MU), NXP Semiconductors NV (NASDAQ:NXPI) and Avago Technologies Ltd (NASDAQ:AVGO).
SMH is in a powerful bull trend that began in November 2008 at under $15 per share. In October 2014, it declined below its 200-day moving average and then reversed to a new high in December above $56.
From there, SMH began another consolidation, this time forming a bullish “W” from a double-bottom at $52. The right side of the bottom triggered a buy signal from my proprietary indicator, the Collins-Bollinger Reversal (CBR).
On Monday, SMH confirmed the bullish “W” by breaking to a new high, backed by a solid increase in volume. Immediate support is at the 50-day moving average at $54.83, followed by the 200-day moving average and double-bottom at $52.
My six-month trading target for SMH is $68, which is 16% above current prices. This ETF is appropriate for traders and investors alike, and the latter may wish to hold it for substantially higher gains.
