The Invesco Semiconductors ETF (PSI) offers a way to invest in the semiconductor sector with low costs and diversified exposure
One of the cool things about ETFs like PSI is their low costs. They’re popular with both individual and institutional investors because they’re transparent and flexible. Plus, they can be a great way to diversify your investments without taking on too much risk.
The PSI ETF is backed by Invesco and has over $789 million in assets. It aims to match the performance of the Dynamic Semiconductor Intellidex Index, which includes various semiconductor companies. This index looks at factors like growth potential and stock valuation to pick its stocks.
When it comes to costs, PSI has an expense ratio of 0.56%, which is pretty standard for this type of fund. It also has a trailing dividend yield of 0.14%. So, while it’s not a huge income generator, it’s still a solid option for long-term investors.
In terms of holdings, PSI is heavily invested in the Information Technology sector, with Broadcom, Lam Research, and Nvidia being its top three stocks. Together, the top 10 holdings make up nearly half of the total assets.
Looking at performance, PSI has gained about 7.44% this year and around 30.61% over the past year. However, it’s considered a higher-risk investment due to its beta of 1.35 and a standard deviation of 36.27%.
If you’re interested in alternatives, there are other ETFs like the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) that you might want to consider. Both have lower expense ratios and significant assets under management.
In summary, if you’re looking for a way to invest in the semiconductor sector, the Invesco Semiconductors ETF (PSI) could be a good fit. Just make sure to do your homework and see if it aligns with your investment goals.
