iShares PHLX Semiconductor ETF. (SOXX-Q)

Be cautious on the semiconductors that are cheap, as they're losing market share to the growthier names. Nvidia is a great name. Or, instead, you could look at an ETF such as SOXX in the US.

Companies like Apple are now bringing semi-conductors back in-house and the sector is seeing many changes. It's hard to see who will be the winner. The sector has run tremendously so he would wait for a pullback before putting money in.

SOXX vs. XSD You don't need to own every industry, you want to own those that are going through some sort of structural change for the better. Semis are the building blocks of today's economy. Secular tailwind. Tech will continue to perform well, but you want to own things more tied to the business cycle. Semis have had a giant move. You can get sharp pullbacks. His favourite place to be in technology. He also owns XSD, more equally weighted. For example, Intel is challenged, but it forms a big piece of SOXX. For that reason, XSD is more attractive.

ETF recommendation? There are a number of them out there. The ones he uses add diversification and are used primarily as a short term trading vehicle for him. He mostly uses SOXX, IGV and FDN.

He does not own it outright, but it is part of the SOXX ETF. The company is involved in semi-conductor chips. He has other companies that he owns in this space. He likes the diversification of SOXX instead. The semi's have become the engine of the tech sector, so it is a good place to be in.