On May 8, iShares Semiconductor ETF (SOXX) rose 5.05% in regular trading, trading at $517.76/share, with trading volume of approximately $2.232 billion.
On the news front, legendary investor Michael Burry — widely known for his role in The Big Short after profiting from the 2008 financial crisis — disclosed this week that he has purchased shares of the iShares Semiconductor ETF tracking the SOX index. The disclosure comes as U.S. semiconductor stocks experience an extreme rally, with the 25-day rolling gain reaching its highest level in over a quarter century. Notably, the last time a comparable pace of appreciation occurred was immediately before the dot-com bubble burst, drawing both bullish momentum buyers and cautious observers to the sector.
Meanwhile, some analysts have flagged that SOXX may be overvalued by more than 65% relative to its estimated fair value, adding to the debate over sustainability of the current rally.
The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments with substantially identical economic characteristics, and may invest up to 20% in futures, options, swap contracts, cash, and cash equivalents. The fund is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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