Qualcomm Ruling Weighs on ETFs With High Exposure

By Francesca Fontana

A number of ETFs with high exposure to Qualcomm Inc. (QCOM) dived Wednesday after a U.S. judge found that the semiconductor company illegally suppressed competition for cellphone chips.

Among the ETFs trading lower are Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL), iShares PHLX Semiconductor ETF (SOXX) and Invesco Dynamic Networking ETF (PXQ).

SOXL, issued by Rafferty Asset Management, is a leveraged ETF that seeks to provide 300% of the exposure to the PHLX Semiconductor Sector Index, according to ETF.com. Among its top 10 holdings are Texas Instruments Inc. and Nvidia Corp. SOXL dropped 5.6% to $119.69, according to FactSet. The PHLX is down 1.8%.

SOXX, issued by BlackRock, tracks a modified market-cap-weighted index of U.S.-listed semiconductor companies, ETF.com says. Among its top 10 holdings are Broadcom Inc. and Intel Corp. SOXX lost 1.9% to $183.41.

PXQ, issued by Invesco, tracks a quantitatively driven index of 30 U.S. networking companies weighted in tiers, according to ETF.com. Among its top 10 holdings are VMware Inc. and Cisco Systems Inc. PXQ dipped 0.6% to $58.18.

Qualcomm shares fell more than 11% in recent trading, leading the broader market lower. The losses followed Tuesday's rebound for chip stocks after the Trump administration granted temporary exemptions to an export blacklist against Huawei Technologies.

Write to Francesca Fontana at [e-mail].

(END) Dow Jones Newswires

May 22, 2019 15:04 ET (19:04 GMT)

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