Broadcom Guidance Weighs on Semiconductor ETFs
June 14 2019 - 2:46PM
Dow Jones News
By Francesca Fontana
A number of ETFs with high exposure to Broadcom Inc. (AVGO) fell
Friday after the chip maker lowered its revenue outlook amid trade
tensions with China. Broadcom shares lost 6.5% and other
semiconductor stocks are among the top losers in the S&P 500
today.
Among the ETFs with Broadcom among their top 10 holdings are
ProShares Ultra Semiconductors (USD), First Trust NASDAQ
Semiconductor ETF (FTXL) and Direxion Daily Semiconductor Bull 3X
Shares (SOXL).
The ProShares-issued USD is a leveraged fund that seeks to
provide two times the exposure to a market-cap-weighted index that
tracks the performance of large U.S. semiconductor companies,
according to ETF.com. Among its top 10 holdings are Intel (INTC)
and Nvidia (NVDA). USD declined 5.2% to $35.79, according to
FactSet.
FTXL, issued by First Trust, tracks an index of highly liquid
U.S. semiconductor companies, weighted by factors related to value,
volatility, and growth, according to ETF.com. Among its top 10
holdings are InterDigital (IDCC) and Analog Devices (ADI). FTXL
lost 3.1% to $30.42.
SOXL, issued by Rafferty Asset Management, aims to provide 3
times the daily exposure to a modified market-cap-weighted index of
companies involved in the design, distribution, manufacture and
sale of semiconductors, according to ETF.com. Among its top 10
holdings are Texas Instruments (TXN) and Qualcomm (QCOM). SOXL was
off 8.5% to $119.50.
Broadcom Inc. said late Thursday that it would make $2 billion
less in annual sales than expected following the U.S. ban on
exports to Chinese telecom giant Huawei Technologies Co., becoming
one of the first big chip makers to quantify the financial effects
of the escalating trade dispute between the U.S. and China.
Write to Francesca Fontana at francesca.fontana@wsj.com.
(END) Dow Jones Newswires
June 14, 2019 14:31 ET (18:31 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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