Key Takeaways

• PSI is outperforming traditional semiconductor ETFs. Gaining 131% over the past year compared with 112% for SOXX, the strategy demonstrates the strength of its rules-based approach.
• PSI has returned 76.91% year to date, supported by exposure to high-bandwidth memory and semiconductor equipment companies beyond GPU makers.
• PSI holds 30 underlying securities and has approximately $2.6 billion in assets under management.

Top Holdings in PSI

PSI takes a different approach to the semiconductor rally.

The fund tracks the Dynamic Semiconductor Intellidex Index. The rules-based index selects about 30 U.S. semiconductor companies.

It evaluates five factors: price momentum, earnings momentum, quality, management action, and value. The portfolio also rebalances and reconstitutes quarterly.

Rather than heavily leaning on a single dominant GPU maker (NVIDIA is weighted at 5.89%), equipment manufacturers (AMAT, LRCX, KLAC, COHU, ONTO) and memory suppliers (MU) make up over 30.3% of the fund’s top 10 holdings.

See More: Semiconductor ETFs: The Trade Broadens

A Proven Semiconductor Strategy

PSI’s strong performance reflects a combination of momentum and differentiated semiconductor exposure. Its 76.91% year-to-date return underscores how strongly the sector has performed in 2026.

However, PSI is not a new AI-themed ETF. The fund launched in 2005, giving its strategy a much longer track record than the current AI boom.

Its history also shows the cyclical nature of semiconductor investing. The current AI spending cycle has simply created a favorable environment for PSI’s quantitative approach.

That makes PSI particularly interesting in 2026. The fund shows that investors do not need to rely solely on mega-cap stocks to capture the AI growth story, although its concentrated factor exposure comes with added risk. PSI charges a 0.56% expense ratio and has about $2.6 billion in assets under management.

When semiconductor spending rises and earnings expectations improve, PSI can benefit. When momentum fades, however, the same strategy can produce sharp losses. For now, that risk-reward trade-off makes PSI one of the semiconductor ETFs worth watching in 2026.

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Invesco Distributors, Inc. is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Invesco Distributors, Inc., nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.