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Semiconductor ETF (SOXQ) Hits New 52-Week High
Invesco PHLX Semiconductor ETF (SOXQ - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 69.9% from its 52-week low price of $24.82/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
SOXQ in Focus
The underlying PHLX Semiconductor Sector Index measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. The product charges 19 bps in annual fees.
Why the Move?
On Tuesday, chipmaker NVIDIA (NVDA - Free Report) hit an all-time high, topped the market cap of $3 trillion and became the second most valuation company in the US market. Even after this huge rally, most analysts continue to bet big on this stock. This news sent Nvidia stock and NVIDIA-heavy semiconductor ETFs like SOXQ soaring.
More Gains Ahead?
Currently, SOXQ has a Zacks ETF Rank #1 (Strong Buy). However, it might continue its strong performance in the near term, with a positive weighted alpha of 81.34, which gives cues of a further rally.