Green microchip set in a blue printed circuit board

Toronto-based Horizons ETFs Management (Canada) Inc. has launched a new ETF offering exposure to the semiconductor industry.

The Horizons Global Semiconductor Index ETF (CHPS) aims to replicate the performance of the Solactive Capped Global Semiconductor Index, which invests in global companies with a minimum market cap of US$1 billion that develop and manufacture semiconductors.

In a release, Horizons noted that semiconductors are used in practically all electronics made today and will likely continue to be used regardless of future trends in consumer technology.

“CHPS is a potential long-term core holding in any global equity allocation as a way to get exposure to technology without necessarily worrying about what the next latest and greatest trend is, because more than likely, some form of semiconductor is powering that technology,” Steve Hawkins, president and CEO of Horizons, said in the release.

Covid-19 has resulted in a shortage of semiconductors and demand is expected to exceed supply “for years to come,” Hawkins added.

The new fund, which has a management fee of 0.45%, began trading on the Toronto Stock Exchange on Tuesday and is available in Canadian-dollar and U.S.-dollar units.