Core Insights - The Invesco Semiconductors ETF (NYSEARCA:PSI) has experienced a significant increase of 45% over the past year, driven by the AI infrastructure boom [1] Group 1 - The ETF's performance reflects the growing demand for semiconductor technology in the AI sector [1]

Quick Read Invesco Semiconductors ETF (PSI) returned 46% over the past year through equal weighting across 30 semiconductor companies. PSI holds only 3.86% in NVIDIA and excludes Taiwan Semiconductor and ASML entirely despite their critical supply chain roles. Investors rethink ‘hands off’ investing and decide to start making real money When individual semiconductor stocks can swing from losses to profits within two years, or when analyst estimates miss by over 1,000%, individual semiconductor stoc ...

Core Insights - Semiconductor stocks have experienced significant growth over the past decade, largely driven by their essential role in the artificial intelligence sector [1] Group 1: Investment Opportunities - Investing in a semiconductor ETF, such as the Invesco Semiconductors ETF, offers a diversified approach to gaining exposure in the semiconductor market, containing 30 stocks linked to the sector [2] - The Invesco Semiconductors ETF has delivered an impressive total return of 820% since December 2015, compared to the S&P 500's total return of approximately 233% during the same period [3] - A hypothetical investment of $100 in the Invesco Semiconductors ETF ten years ago would have grown to around $920, while a $500 investment would have increased to about $4,600 [3] Group 2: Risk Considerations - The Invesco Semiconductors ETF, while providing some diversification, carries more risk compared to broader market funds like the S&P 500 ETF due to its focus on a niche subsector [5]

Core Viewpoint - The Invesco Semiconductors ETF (PSI) offers investors exposure to the semiconductor sector through a smart beta strategy, aiming to outperform traditional market cap weighted ETFs [1][3][12]. Fund Overview - PSI was launched on June 23, 2005, and has accumulated over $699.47 million in assets, categorizing it as an average-sized ETF within the Technology ETFs [1][5]. - The fund seeks to replicate the performance of the Dynamic Semiconductor Intellidex Index, which evaluates semiconductor companies based on various investment criteria [5][6]. Cost and Expenses - PSI has an annual operating expense ratio of 0.56%, which is competitive within its peer group [7]. - The fund offers a 12-month trailing dividend yield of 0.14% [7]. Sector Exposure and Holdings - The fund is heavily weighted towards the Information Technology sector, which constitutes 97.9% of its portfolio [8]. - Key holdings include Applied Materials Inc (5.03%), Texas Instruments Inc, and Lam Research Corp, with the top 10 holdings making up approximately 46.24% of total assets [9]. Performance Metrics - Year-to-date, PSI has increased by approximately 1.5% and has risen about 11.14% over the past 12 months as of August 4, 2025 [11]. - The ETF has a beta of 1.50 and a standard deviation of 36.67% over the trailing three-year period, indicating higher risk compared to peers [11]. Alternatives - Other ETFs in the semiconductor space include iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH), with assets of $13.11 billion and $26.21 billion respectively [13]. - SOXX and SMH both have lower expense ratios of 0.35%, appealing to investors seeking cost-effective options [13].

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].