Invesco Semiconductors ETF (PSI) was launched on June 23, 2005, and represents a smart beta exchange-traded fund designed to provide broad exposure to the Technology ETFs market segment. Smart beta strategies offer an alternative to traditional market-cap weighted indexes, aiming to deliver potentially superior risk-adjusted returns through non-cap weighted methodologies. The fund’s objective is to match the performance of the Dynamic Semiconductor Intellidex Index. Currently, the Invesco Semiconductors ETF manages over $1.29 billion in assets, positioning it as one of the larger ETFs within the Technology ETFs category. The fund’s strategy centers around replicating the Dynamic Semiconductor Intellidex Index, which is comprised of stocks of semiconductor companies. This index evaluates companies based on a multitude of investment merit criteria, including fundamental growth, stock valuation, investment timeliness, and risk factors.
The expense ratio for PSI is 0.56% annually, aligning with the typical cost structure of peer products in the sector. This suggests a focus on cost-effectiveness, recognizing that lower expense ratios are frequently associated with better investment outcomes. The 12-month trailing dividend yield stands at 0.08%. Investors should always consider the impact of dividend payments on overall returns, though this fund’s yield is relatively low. Transparency is a core component of the fund’s structure, with daily disclosure of holdings, allowing investors to meticulously analyze the portfolio’s composition.
A significant portion of PSI’s holdings reflects the strength of the Information Technology sector, accounting for nearly 100% of its portfolio. Within this concentrated allocation, Micron Technology Inc (MU) holds a substantial position, representing approximately 6.29% of the fund’s total assets. Lam Research Corp (LRCX) and Intel Corp (INTC) also comprise a significant portion of the fund’s holdings, demonstrating the substantial influence these companies have on PSI’s performance. The top 10 holdings alone account for approximately 45.75% of the fund’s assets under management, highlighting the concentration of risk associated with this investment.
Historically, the Invesco Semiconductors ETF has demonstrated noteworthy performance. As of February 10, 2026, the ETF has achieved a gain of approximately 26.2% this year and a substantial 67.95% increase over the past year. The fund’s trading range over the past 52 weeks has been between $39.29 and $99.52. Notably, PSI exhibits a beta of 1.58 and a standard deviation of 35.98% for the trailing three-year period. This indicates a high level of volatility and risk, making PSI a relatively risky investment within the semiconductor sector. With a portfolio composed of 32 holdings, this ETF’s exposure is more concentrated compared to some of its peers.
For investors seeking alternatives to the Invesco Semiconductors ETF, several other options are available. The iShares Semiconductor ETF (SOXX) tracks the PHLX SOX Semiconductor Sector Index, and the VanEck Semiconductor ETF (SMH) tracks the MVIS US Listed Semiconductor 25 Index. The iShares Semiconductor ETF boasts assets of $21.19 billion, while the VanEck Semiconductor ETF manages $43.69 billion. The iShares Semiconductor ETF carries an expense ratio of 0.34%, and the VanEck Semiconductor ETF has an expense ratio of 0.35%. Investors looking for lower-risk options may prefer traditional market-cap weighted ETFs that aim to mirror the performance of the Technology ETFs market segment.
To gain further insights regarding this product and various other ETFs, potential investors are encouraged to perform a thorough screen based on their specific investment objectives. Staying abreast of the latest developments within the ETF investment universe through resources like the Zacks ETF Center can contribute to informed decision-making. Those interested in receiving tailored stock recommendations, Zacks Investment Research offers access to a 7 Best Stocks for the Next 30 Days report, available for download.