After being one of the strongest parts of the market for more than a decade, semiconductors have been in the midst of a brutal selloff. YTD, the VanEck Semiconductors ETF (SMH) is down 32% which is more than double the S&P 500’s YTD loss of 15%.
Although the near-term outlook remains cloudy, investors should consider using this weakness to increase exposure, especially for those semiconductor companies showing evidence of earnings growth and margin expansion.
