eToro launches ‘Chip-Tech’ portfolio allowing investors to back the USD440bn global semiconductor sector
Investment platform, eToro, has launched a portfolio that allows investors to back companies playing an integral role in semiconductor manufacturing and commercialisation.
More commonly known as “chips”, semiconductors are vital components of thousands of everyday electrical products, including smartphones and computers, electric vehicles, medical equipment, home appliances and gaming hardware.
The ‘Chip-Tech’ portfolio is comprised of 35 companies that play varying roles in the semiconductor domain.
Dani Brinker, head of portfolio investments at eToro, comments: “Chips power everything from wrist watches to airplanes and, without them, modern life as we know it wouldn’t exist. While chip makers and designers are perhaps less well-known than many of the consumer-facing brands that rely on chips in their products and services, investors have long been aware of their importance to the global tech sector. The launch of our Chip-Tech portfolio means retail investors can easily invest in a basket of some of the world’s most exciting and innovative chip designers and makers."
The portfolio consists broadly of four types of companies operating in this space. Fabless with companies that design, sell and market semiconductors, but do not manufacture them, such as AMD, Nvidia and Qualcomm; Foundries, companies that manufacture chips, such as Taiwan Semiconductor Manufacturing Company and United Microelectronics; Integrate Device Manufacturers (IDMs), firms that both design and manufacture their own chips, such as Intel, Infineon Technologies and Analog Devices and Suppliers, companies that produce machines and technology for semiconductor manufacturing, such as ASML and Applied Materials.
“The semiconductor industry has grown three-fold over the past 20 years,” says Brinker. “Covid and the trade war between the US and China caused supply problems for the semiconductor industry and highlighted how ubiquitous the use of these products are, with shortages leading to delayed delivery across a wide array of sectors including automotive and gaming. We feel the sector’s long-term prospects look good and our Chip-Tech portfolio offers retail investors a seamless way to access the sector’s vast growth potential through a diversified portfolio backed by ongoing monitoring of developments in the sector.”
Initial investment starts from USD1,000 and investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the semiconductor sector. Chip-Tech is one of over sixty portfolios available on eToro.