Should You Invest in the Invesco Semiconductors ETF (PSI)?

Core Viewpoint - The Invesco Semiconductors ETF (PSI) is a passively managed fund aimed at providing broad exposure to the Technology - Semiconductors sector, appealing to both institutional and retail investors due to its low costs and transparency [1][2]. Group 1: Fund Overview - Launched on June 23, 2005, PSI has accumulated over $744.02 million in assets, positioning it as an average-sized ETF in the semiconductor segment [3]. - The fund seeks to match the performance of the Dynamic Semiconductor Intellidex Index, which evaluates semiconductor companies based on various investment criteria [4]. Group 2: Costs and Performance - PSI has annual operating expenses of 0.56% and a 12-month trailing dividend yield of 0.14%, making it competitive with peer products [5]. - Year-to-date, PSI has returned approximately 7.09% and is up about 2.26% over the last 12 months, with a trading range between $39.29 and $64.98 in the past 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation in the Information Technology sector, comprising about 97.70% of the portfolio [6]. - Kla Corp (KLAC) represents about 5.16% of total assets, with the top 10 holdings accounting for approximately 46.26% of total assets under management [7]. Group 4: Alternatives and Market Position - PSI holds a Zacks ETF Rank of 2 (Buy), indicating strong expected returns and favorable expense ratios, making it a solid choice for investors seeking exposure to the Technology ETFs segment [9]. - Other alternatives in the semiconductor ETF space include the IShares Semiconductor ETF (SOXX) with $13.95 billion in assets and the VanEck Semiconductor ETF (SMH) with $27.74 billion, both having an expense ratio of 0.35% [10].