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Is Invesco Semiconductors ETF (PSI) a Strong ETF Right Now?
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Launched on 06/23/2005, the Invesco Semiconductors ETF (PSI - Free Report) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PSI has amassed assets over $2.44 billion, making it one of the larger ETFs in the Technology ETFs. PSI seeks to match the performance of the Dynamic Semiconductor Intellidex Index before fees and expenses.
The Dynamic Semiconductor Intellidex Index is comprised of stocks of semiconductor companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for PSI are 0.55%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.02%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PSI, it has heaviest allocation in the Information Technology sector --about 100% of the portfolio.
Looking at individual holdings, Intel Corp (INTC) accounts for about 5.75% of total assets, followed by Advanced Micro Devices Inc (AMD) and Micron Technology Inc (MU).
Its top 10 holdings account for approximately 46.67% of PSI's total assets under management.
Performance and Risk
The ETF has added roughly 50.72% and is up about 58.99% so far this year and in the past one year (as of 10/26/2026), respectively. PSI has traded between $68.75 and $187.82 during this last 52-week period.
The fund has a beta of 1.80 and standard deviation of 43.58% for the trailing three-year period, which makes PSI a high risk choice in this particular space. With about 33 holdings, it has more concentrated exposure than peers .
Alternatives
Invesco Semiconductors ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Semiconductor ETF (SOXX) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $42.58 billion in assets, VanEck Semiconductor ETF has $65.69 billion. SOXX has an expense ratio of 0.33% and SMH changes 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco Semiconductors ETF (PSI) a Strong ETF Right Now?
Launched on 06/23/2005, the Invesco Semiconductors ETF (PSI - Free Report) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PSI has amassed assets over $2.44 billion, making it one of the larger ETFs in the Technology ETFs. PSI seeks to match the performance of the Dynamic Semiconductor Intellidex Index before fees and expenses.
The Dynamic Semiconductor Intellidex Index is comprised of stocks of semiconductor companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for PSI are 0.55%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.02%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PSI, it has heaviest allocation in the Information Technology sector --about 100% of the portfolio.
Looking at individual holdings, Intel Corp (INTC) accounts for about 5.75% of total assets, followed by Advanced Micro Devices Inc (AMD) and Micron Technology Inc (MU).
Its top 10 holdings account for approximately 46.67% of PSI's total assets under management.
Performance and Risk
The ETF has added roughly 50.72% and is up about 58.99% so far this year and in the past one year (as of 10/26/2026), respectively. PSI has traded between $68.75 and $187.82 during this last 52-week period.
The fund has a beta of 1.80 and standard deviation of 43.58% for the trailing three-year period, which makes PSI a high risk choice in this particular space. With about 33 holdings, it has more concentrated exposure than peers .
Alternatives
Invesco Semiconductors ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Semiconductor ETF (SOXX) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $42.58 billion in assets, VanEck Semiconductor ETF has $65.69 billion. SOXX has an expense ratio of 0.33% and SMH changes 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.