Invesco Semiconductors ETF

Invesco Semiconductors ETF (PSI) is an index fund that holds the 30 U.S. chip and chip-equipment companies in the Dynamic Semiconductor Intellidex Index. Its weights are much more even than the companies' sizes. As of July 31, 2026, Applied Materials was the largest holding at 6.5%, NVIDIA was 5.5%, and smaller suppliers held about 3% each. It costs 0.55% a year, more than the 0.31% average of similar funds.

• Over the year to Oct 27, 2026, PSI returned +65.1%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +24.5% and its 10-year +28.6%.
• In the 2020 COVID crash it fell 36.6% and regained its old high 2.5 months after the low.
• Its worst full calendar year was 2008 (-46.2%); its best was 2020 (+56.8%).
• The deepest fall in its price history was 63% (May 4, 2006 to Nov 20, 2008), recovered by Mar 4, 2014.

As of Jul 31, 2026, the fund held 30 securities; the ten largest made up 49.42% of assets, and 2.99% sat in cash and money-market holdings.

By sector

• Over the three months to Jul 31, 2026, investors added a net $341.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +16.17%, +20.93%, -27.37%.

PSI tracks the Dynamic Semiconductor Intellidex Index, which ICE Data Indices compiles and maintains. The index holds 30 U.S. companies whose main business is semiconductors. Some make chips, some make or test chips for other companies, and some supply the equipment and services used to make chips and other thin film products, such as flat panel displays. As of June 30, 2026, the smallest member was worth $1.9 billion in the stock market and the largest $4.8 trillion.

The fund uses full replication. That means it buys every stock in the index, in the same proportions as the index. As of July 31, 2026, Applied Materials was the largest holding at 6.5%. Advanced Micro Devices, NVIDIA, Micron, KLA, Lam Research and Analog Devices followed at about 5% to 5.5% each. Smaller suppliers such as Ichor Holdings, Cohu and Ultra Clean held about 3% each. The top 10 holdings made up 49% of assets.

As an index fund, PSI generally buys or sells a stock only when the index adds or drops it, even if the stock is doing poorly. Portfolio turnover was 105%, which is roughly like replacing the whole portfolio once in a year, and that can raise trading costs. The fund is non-diversified, so it is allowed to put more of its money into a few companies. It held no derivatives as of July 31, 2026.

• PSI charges 0.55% a year, versus an average of 0.31% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).

PSI holds only 30 stocks in one industry and has swung far more than the broad market, so it fits better as a small add-on than as a foundation.

PSI could add a focused stake in U.S. chip companies. According to the prospectus, the fund returned an average of 25.63% a year over the 10 years through December 31, 2025. The price for that is steep swings. PSI fell 59.1% in the 2008 financial crisis and took about five years to recover. It lost 44.1% in the 2022 bear market and got back to its peak in about 15 months. In the 2020 COVID crash it fell 36.6% and recovered in 2.5 months. Its worst calendar year was 2008, when it lost 46.2%. Anyone who has to sell shares during a drop like these would lock in deep losses. It pays almost no income: the yield was 0.02% as of October 27, 2026, paid twice a year. Its 0.55% expense ratio is above the 0.31% average of similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.