The XSD Semiconductor ETF Pops 12%, But Has an Intel Problem

NodeGuardian · 2026-02-27T20:51:39+00:00

The SPDR Semiconductor ETF (XSD) has gained 12% this year, propelled by demand for AI chips, but its equal-weight strategy may limit returns by trimming outperformers like Micron while adding underperformers like Intel. Future performance depends on AI spending and rebalancing effects.

NodeGuardian

2026-02-27 20:51:39

Abstract generation in progress

The SPDR Semiconductor ETF (XSD) has seen a 12% year-to-date gain, largely driven by surging demand for AI infrastructure chips. However, its equal-weight rebalancing strategy means that outperforming companies like Micron Technology are trimmed, while underperformers such as Intel are added, potentially hindering overall returns. The ETF’s future performance hinges on sustained AI infrastructure spending and the impact of its quarterly rebalancing on its holdings.

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