US equity sector ETFs closed broadly higher Thursday, with semiconductor funds surging 6.75% and airline ETFs jumping 6.31%, as risk appetite returned to growth sectors.
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Semiconductor ETFs jump 6.75% to lead US sector rally on June 11
US semiconductor ETFs surged 6.75% on June 11, leading a broad sector rally that lifted airline, tech, and consumer discretionary funds while energy slid 1.96%.
The rally extended a year-to-date surge in chip stocks that has seen the Invesco PHLX Semiconductor ETF (SOXQ) gain 94% through June 2, outperforming the S&P 500's 11% advance by a factor of roughly 8 to 1, according to fund data. Semiconductor demand is being driven by AI-related capital expenditure from hyperscalers including Microsoft, Meta Platforms, Alphabet and Amazon.com, with Advanced Micro Devices up 144% year to date and Broadcom's AI semiconductor revenue growing 106% year over year.
Among sector ETFs, the U.S. Global Jets ETF (JETS) rose 6.31%, while global tech index, tech sector, biotech index, consumer discretionary, banking and internet index ETFs gained as much as 3.73%. The energy ETF was the sole laggard, falling 1.96%. The airline-focused fund has returned 20.1% over the trailing 12 months, while the Invesco Aerospace & Defense ETF (PPA) has gained 25.1% in the same period, data show.
The broad-based rally signals a return of risk appetite after a period of sector rotation, with investors favoring growth-oriented names over defensive sectors. The next catalyst for semiconductor names will be Broadcom's quarterly report, where the market expects AI semiconductor revenue to trace a path toward the company's $100 billion target by 2027.
The semiconductor rally has been concentrated in a handful of AI-leveraged names. AMD has jumped 144% year to date to $522, while Taiwan Semiconductor Manufacturing Co. has gained 47.4% and Broadcom has risen 39%, according to market data. NVIDIA, the largest holding in most semiconductor ETFs, has risen a more modest 19% year to date, reflecting a pattern where the stock has sold off after each of the past five quarterly reports despite beating estimates.
The U.S. Global Jets ETF, which holds 50 positions concentrated in airline operators, has benefited from sustained travel demand. Its top holdings include Delta Air Lines at 12.7%, American Airlines Group at 12% and United Airlines Holdings at 11.6%, according to the fund's latest disclosures. The fund has $860.4 million in assets under management and a 0.60% expense ratio.
The Invesco Aerospace & Defense ETF, by contrast, offers exposure to defense contractors with lower historical volatility — its five-year beta is 0.74 versus 1.21 for JETS. The fund holds 60 positions including Boeing at 8.1%, RTX Corp at 7.9% and GE Aerospace at 7.8%, and has $8 billion in assets under management.
This article is for informational purposes only and does not constitute investment advice.
[1] Thursday (June 11) U.S. sector ETFs mostly closed higher, with semiconductor ETF up 6.75%, global airline ETF up 6.31%, global tech index ETF, tech sector ETF, biotech index ETF, consumer discretionary ETF, banking ETF, internet index ETF up as much as 3.73%, energy ETF down 1.96%[2] Better Returns, Lower Risk: Invesco Aerospace ETF Tops Jets ETF[3] Better Aerospace ETF: Tema's NASA (Which Includes SpaceX) vs. U.S. Global's JETS[4] The Best-Performing AI ETF of the Year Isn't a Pure Chip Play[5] The Chip ETF That Turned a $10k Bet Into Nearly $20k This Year
