Is Invesco Semiconductors ETF (PSI) a strong ETF right now?

Launched on 06/23/2005, the Invesco Semiconductors ETF (PSI) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.

What are Smart Beta ETFs?

Market-cap-weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Market-cap-weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

There are some investors, though, who think it’s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Even though this space provides many choices to investors–think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting–not all have been able to deliver first-rate results.

Fund sponsor and index

PSI is managed by Invesco, and this fund has amassed over $1.29 billion, which makes it one of the larger ETFs in the Technology ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Semiconductor Intellidex Index.

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 and 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 0.56%, which makes it on par with most peer products in the space.

It’s 12-month trailing dividend yield comes in at 0.08%.

Sector exposure and top holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, 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.

When you look at individual holdings, Micron Technology Inc (MU) accounts for about 6.29% of the fund’s total assets, followed by Lam Research Corp (LRCX) and Intel Corp (INTC).

PSI’s top 10 holdings account for about 45.75% of its total assets under management.

Performance and risk

The ETF has gained about 26.2% and is up about 67.95% so far this year and in the past one year (as of 02/10/2026), respectively. PSI has traded between $39.29 and $99.52 during this last 52-week period.

The fund has a beta of 1.58 and standard deviation of 35.98% for the trailing three-year period, which makes PSI a high risk choice in this particular space. With about 32 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 $21.19 billion in assets, VanEck Semiconductor ETF has $43.69 billion. SOXX has an expense ratio of 0.34% 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