Intel (NasdaqGS: INTC) is one of just two members of the Dow Jones Industrial Average down at least 10% this year. American Express (NYSE: AXP) is the other.
Intel’s woes and those of Qualcomm (NasdaqGS: QCOM), SanDisk Corp. (NasdaqGS: SNDK) and Micron Technology (NadaqGS: MU) are highlighting important differences between semiconductor exchange traded funds. However, those stocks are not the only problems for ETFs, such as the $543.9 million iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) and the Market Vectors Semiconductor ETF (NYSEArca: SMH). [Intel Woes Highlight Differences in Chip ETFs]
Taiwan Semiconductor (NYSE: TSM) has also been a thorn in the side of semiconductor ETFs, namely SMH. That ETF has a 14.8% weight to Taiwan Semiconductor, making the stock the ETF’s second-largest holding behind Intel. SOXX has a 3.8% weight to Taiwan Semiconductor, making the stock the ETF’s tenth-largest holding.
Shares of Taiwan Semiconductor are off 6.3% over the past month. Intel has jumped almost 5% over the same period and the Taiwanese chip giant is giving investors little reason to believe share price appreciation is coming in the near-term.
On Thursday, the company forecast second-quarter revenue that is below analysts’ estimates. Taiwan Semiconductor also trimmed capital spending estimates, prompting speculation that Apple (NasdaqGS: AAPL), a major source of the Taiwanese company’s revenue, is taking some of its business elsewhere.
Taiwan Semiconductor is also dragging the iShares MSCI Taiwan ETF (NYSEArca: EWT) lower. The stock is EWT’s largest holding at a weight of almost 23%, more than triple EWT’s weight to its second-largest position.