SPDR® S&P Semiconductor ETF (XSD)

ETF Summary: SPDR® S&P Semiconductor ETF (XSD)

Profile

This ETF seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the S&P Semiconductor Select Industry Index. It offers exposure primarily to large-cap and growth companies in the semiconductors sector, including:

• Integrated Circuit Designers
• Semiconductor Equipment
• Semiconductor Manufacturing

Investment Objective

• Track the S&P Semiconductor Select Industry Index
• Offer targeted exposure to the semiconductor industry
• Achieve long-term capital growth

### issuer:

• State Street Global Advisors (SSgA)

  • Reputation: SSgA is the world's third-largest asset manager with a long, established history and strong reputation.

  • Management**: The ETF is passively managed and tracks an established index ensuring consistency and adherence to investment objectives.

Market Share and Size

• XSD is the second-largest semiconductor industry ETF with a market share of roughly 8%.
• Total net assets are approximately $5.8 billion.

Competitive Moat and Advantages

• Established brand recognition within a well recognized ETF family (SPDR)
• Low expense ratio compared to similar funds.
• High liquidity offering investors easy entry and exiting.

Financial Data and Performance

Average Annual Returns (as reported by the issuer and before fees, expenses or taxes, October 6, 2023)::

• 1 year: 42.45%
• 3 years: (annualized)16.87% *5 years: (annualized) 24.58%
• 1.12.58% 10 years: (an

The ETF has historically outperformed its benchmark index, the S&P 500.

Liquidity

• Average Daily Trading Volume: Approximately 4,502,002 shares
• Tight Bid-Ask Spread, indicating low transaction costs.

Growth Prospects & Market Dynamics

The global semiconductor market is anticipated to experience robust long-term growth, driven by increasing demand from various sectors including:

• Artificial intelligence
• Consumer electronics
• 5th Generation (or 5G)-enabled devices

Key Competitors:

• iShares PHLX SOX Semiconductor Sector Index ETF (SOXX): Market Share 90.1%
• VanEck Semiconductor ETF (SMH), Market share is 2.03%

Fees

The expense expense ratio for XSD is 0.35%.

Investment Strategy & Composition

• This ETF passively manages its portfolio to match the S&P Semiconductor Select Industry Index.
• XSD invests mainly in large- and mid-cap semiconductor company stocks.

Key Highlights:

• Provides diversified and sector-specific exposure
• Offers cost efficiency and liquidity with low management fees and high trading volumes

Risks & Who Should Invest

Risks:

• Volatility: As with any sector-specific investment, the market value may be subject to greater swings than a broader-market investment.
• Industry Risk: Economic downturns or negative changes directly affecting this industry could lead
  to under-performance.

Who Should Invest:

• Investors seeking long- term growth potential of the semiconductors industry
• Individuals who believe the semiconductor industry will experience above market returns in the future

AI-powered Evaluation: 8

Overall, SPDR® S&P Semiconductor ETF presents as an attractive choice for investors seeking sector-specific exposure. Its strong performance, diversified holdings, robust market, liquidity and low management fees contribuute significantly to its investment potential . While short and medium term price declines pose some risk, a long term investment horizon could allow investors to reap significant rewards

Resources & Disclaim

Websites:

• https://www.ssga.com/us/en/individual/etfs/equity/spdr-snp-semiconductor-etf-xsd
• https://seekingalpha.com/symbol/XSD
• www.etf.com/XSD *https://finance.yahoo.com /quote / XSD? p = XSD

Important Disclosure: The information above provides educational information and does not constitute investment advice. It is essential to consult with qualified and experienced financial professionals to determine whether any investment is suitable and appropriate