| JUL05 - Our recommendation for the semiconductor sector is the iShares Goldman Sachs Semiconductor ETF, symbol (IGW). There is another semiconductor ETF available, the Semiconductor Holders Trust (SMH). Both ETF's have similar characteristics, but there is more public information available on the ishares. Given their similarity the tie goes to the ETF with the most transparency. IGW is highly volatile with its one-year volatility estimate among the highest of all ETF's. Their biggest holdings are Intel, Texas Instruments and Motorola. These three holdings make up about 28% of the funds value.
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APR06
We previously recommended
the iShares Goldman Sachs
Semiconductor Index Fund (IGW) in
July 2005 at a price of $57.29. The shares
have done well, increasing 16.08% to its
current price of $66.51. We still think
this sector has more to offer. We are
encouraged by the recently announced
record sales of consumer electronics
at Circuit City and note that flat panel
high definition televisions have lots of
semiconductors and are increasing in
popularity.
We think this semiconductor
ETF is a better play than the
Semiconductor Holders Trust (SMH)
because of greater transparency in the
Goldman Sachs product. IGW is highly
volatile with its one-year volatility
among the highest of all ETF's, which
may enhance option values for those
considering a covered call strategy. Their
biggest holdings are Texas Instruments,
Motorola and Applied Materials which
make up 23% of their net asset value. |
