Money Begins To Pour Out Of This Very Popular Semiconductor ETF

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows report, which today looks out money pouring out of the once-hot semiconductor space, ahead of earnings from some heavy-hitters in the sector.

We have seen some outflows in the second largest Semiconductor ETF, SMH (VanEck Vectors Semiconductor) recently, which seems to be predicated on the largest weighted member of the ETF, TSM, reporting quarterly earnings recently. About $370 million has left the fund lately on heavy trading volume, and on a bit of a swoon in the sector, and we point out that the second highest weighted member, INTC, is slated to report earnings 4/27, so there may be additional volatility in this fund in the next several weeks.

Leveraged plays like the SOXS (Direxion Daily Semiconductor Bear 3X) and SSG (ProShares UltraShort Semiconductors) may be in focus in the near term as a result — especially if there is additional weakness in the space.

The VanEck Vectors Semiconductor ETF (NYSE:SMH) was trading at $77.19 per share on Tuesday afternoon, up $0.11 (+0.14%). Year-to-date, SMH has gained 7.75%, versus a 4.70% rise in the benchmark S&P 500 index during the same period.

SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #19 of 54 ETFs in the Technology Equities ETFs category.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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