Global X AI Semiconductor and Quantum ETF (CHPX)

On our desk, CHPX is getting a serious look for its targeted thematic exposure. By combining core AI powerhouses like Nvidia, TSMC, Micron, and Broadcom with an early-stage quantum computing allocation, it provides a unique one-ticket solution. Even with a 0.50% expense ratio and minimal yield, the structural AI tailwinds heavily outweigh the costs for our growth mandates.

When evaluating chip-heavy thematic baskets for client portfolios, I weigh CHPX's pure semiconductor peers like SMH against its quantum tilt. Holding approximately 38 to 40 companies with top weights in memory, network providers, and systems enablers gives it a diversified global ecosystem footprint across international markets, launched back in late 2025.

Looking at the risk profile, I am flagging a 1Y beta of 1.67 against the broad market. While its index maximum drawdown of -34.1% held somewhat better than the broader category's -41.0% over a 5-year proxy window, the volatility is high. At roughly $218M to $265M in AUM and an average daily volume near $617K, it sits too close to thematic ETF closure-risk territory for my comfort.

Our macro team loves the narrative. AI is fundamentally reshaping the semiconductor industry, creating insatiable demand for next-gen hardware. CHPX captures this transformation cleanly, which explains why recent performance metrics show an 82% YTD return trajectory that justifies its premium valuation despite cyclical risks.

From a quantitative perspective, the Sharpe ratio of 0.83 and Sortino ratio of 1.34 are serviceable for a sub-sector fund targeting specialized computing technologies. However, the lack of direct individual investment-level capture data forces us to rely on index-level proxies, such as a 141 upside and 126 downside capture over a 3-year baseline.