Semiconductor ETF Rebounds After Volatile Week as Weak Jobs Data Overshadows Broadcom and Fed Jitters
Published on 07/05/2026 at 18:35 | Redaktion boerse-global.de
The iShares MSCI Global Semiconductors UCITS ETF closed Friday at €19.30, up 4.37% on the day, but the celebration is measured: the fund remains 10.34% below its June 22 record of €21.52. Year-to-date it still holds a staggering 95.48% gain, yet the annualized 30-day volatility of 68.23% is a stark reminder that this is no smooth ride.
The week’s turmoil had its roots in a constellation of sector-specific shocks. Broadcom’s cautious outlook in early June — it flagged AI revenue of just $16 billion for the third fiscal quarter of 2026, undershooting analyst expectations — triggered a broad rotation out of semiconductor stocks. That was compounded by a memory-chip oversupply that continues to plague equipment makers such as KLA Corporation and Lam Research, a problem that analysts warn could persist into the third quarter of 2026. The selloff climaxed midweek when Micron Technology shed 13% in a single session, wiping out roughly $138 billion in market value. Intel and Advanced Micro Devices lost 9% and 7% respectively, and the VanEck Semiconductor ETF gave up 5% after a record second quarter.
Adding to the pressure was a hawkish pivot at the Federal Reserve. Under new Chair Kevin Warsh, nine of the eighteen Federal Open Market Committee members now support rate hikes for 2026 — up from zero in March. That shift had been weighing on high-valuation tech names.
Friday’s turnaround was sparked by an entirely different macroeconomic signal. The US added only 57,000 new jobs in June, far below the 115,000 consensus, while May’s figure was revised down to 129,000. Disappointment immediately revived bets on a September rate cut, according to the CME FedWatch Tool, and the relief rally swept across global markets.
Asia responded with particular ferocity. South Korea’s Kospi surged 5.76%, recouping most of the prior day’s near-8% slide. Samsung Electronics jumped 6.5%, SK Hynix added 4.2%, and in Japan, Kioxia Holdings skyrocketed 7.3%. European and US markets also caught the bid: the Stoxx 600 rose 0.5%, and the Dow Jones Industrial Average notched a record close at 52,900.07, up 1.14%, even as the Nasdaq lagged due to lingering chip weakness.
The ETF’s composition made it particularly vulnerable to the memory rout. Unlike funds concentrated on a single AI leader like Nvidia, this vehicle spreads its capital across memory, logic, and equipment names. Its top holdings — Micron, Advanced Micro Devices, Taiwan Semiconductor Manufacturing, Nvidia, and Broadcom — mean that fluctuations in memory pricing hit the portfolio harder than some peers. That sensitivity was on full display as memory stocks bore the brunt of the correction before staging a partial recovery.
Technically, the fund sits in neutral territory. The 14-day relative strength index stands at 51.0, while the price is 8.19% above its 50-day moving average of €17.84. The 100-day average of €14.72 underscores just how far the rally has traveled this year, even after the recent pullback. Kiwoom Securities analyst Han Ji-young points to South Korea’s June export data and preliminary quarterly earnings from Samsung Electronics as the next potential catalysts.
Launched in August 2021 and domiciled in Ireland, the ETF manages roughly €5.4 billion in assets. It tracks the MSCI ACWI IMI Semiconductors & Semiconductor Equipment ESG Screened Select Capped Index, replicating its holdings physically rather than through derivatives. The total expense ratio is 0.35%. Whether the recovery can hold will depend on how durable the revived rate-cut expectations prove — and whether Asia’s chipmakers can sustain their bounce against a backdrop of supply gluts and cautious corporate outlooks.
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