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IYW vs PSI
Which ETF would AI Choose? iShares U.S. Technology ETF (IYW) vs. Invesco Semiconductors ETF (PSI)
Key Takeaways
- iShares U.S. Technology ETF (IYW) offers broad exposure to the U.S. technology sector through a passive index tracking approximately 148 holdings, with significant allocations to semiconductors, software, and hardware.
- Invesco Semiconductors ETF (PSI) provides concentrated, rules-based exposure to about 30 U.S. semiconductor companies selected via a quantitative multi-factor model, resulting in higher sector specificity and expense ratio.
- IYW maintains a lower expense ratio of 0.37% compared to PSI's 0.55%, enhancing long-term cost efficiency for broad technology investors.
- PSI emphasizes pure-play semiconductor manufacturers with quarterly rebalancing, potentially offering greater sensitivity to chip-cycle dynamics and AI-driven demand within that niche.
- IYW features top holdings dominated by mega-cap names such as NVIDIA Corp, Apple Inc, and Microsoft Corp, while PSI spreads weight more evenly across semiconductor specialists like Advanced Micro Devices Inc and Intel Corp.
- Both ETFs target technology growth themes but differ in diversification, with IYW delivering wider sector coverage and PSI delivering narrower, higher-conviction semiconductor focus.
Introduction
Investors seeking technology exposure often evaluate broad sector funds against specialized industry vehicles. IYW and PSI both provide U.S.-focused equity access tied to innovation and semiconductor demand, yet they pursue distinct strategies. IYW delivers diversified technology coverage across software, hardware, and related services, while PSI narrows to semiconductor manufacturers using a quantitative selection process. The comparison helps clarify trade-offs in cost, concentration, and thematic precision for portfolios positioned around long-term digital transformation trends.
iShares U.S. Technology ETF (IYW) Overview
The iShares U.S. Technology ETF (IYW) seeks to track the Russell 1000 Technology RIC 22.5/45 Capped Index. The passive fund holds approximately 148 securities and allocates the majority of assets to U.S. technology and technology-enabled companies. Top holdings typically include NVIDIA Corp, Apple Inc, Microsoft Corp, Alphabet Inc, and Broadcom Inc, which together account for a substantial portion of assets. Sector weights emphasize semiconductors and semiconductor equipment (around 38-42%), software and services (22-29%), and tech hardware (19-22%), with smaller allocations to media and entertainment. The expense ratio stands at 0.37%. Launched in 2000, the ETF employs standard index replication with periodic adjustments to maintain benchmark alignment.
Invesco Semiconductors ETF (PSI) Overview
The Invesco Semiconductors ETF (PSI) tracks the Dynamic Semiconductor Intellidex Index. This rules-based fund holds approximately 30-31 U.S. semiconductor companies selected through a proprietary quantitative model incorporating price momentum, earnings momentum, quality, management action, and value factors. Holdings feature names such as Advanced Micro Devices Inc, Intel Corp, Micron Technology Inc, KLA Corp, and Texas Instruments Inc, with relatively even weighting across the basket. The fund rebalances and reconstitutes quarterly. Its expense ratio is 0.55%. The structure focuses exclusively on semiconductor manufacturers, resulting in higher concentration and a narrower thematic mandate than broad technology vehicles.
Industry and Thematic Backdrop
The semiconductor and broader technology sectors continue to benefit from sustained demand for artificial intelligence infrastructure, data center expansion, and advanced computing applications. Capital flows have favored companies supplying chips, memory, and fabrication equipment amid ongoing innovation cycles. Macroeconomic factors including interest rate expectations, supply chain stabilization, and global trade policies influence capital expenditure decisions by technology firms. Regulatory developments around export controls and domestic manufacturing incentives add complexity to the operating environment. Both ETFs operate within this growth-oriented yet cyclical landscape, where earnings momentum in leading semiconductor and software companies drives sector performance over multi-quarter periods.
Performance and Positioning Comparison
In recent market cycles, IYW has reflected the broader technology sector's resilience, supported by diversified exposure to software and hardware leaders whose earnings have benefited from cloud and AI adoption. PSI has shown greater sensitivity to semiconductor-specific cycles, with performance tied more directly to chip demand fluctuations and capacity utilization trends. During periods of sector rotation, the broader holdings in IYW have historically provided some cushion relative to the concentrated semiconductor focus of PSI. Volatility differences stem from PSI's narrower mandate and smaller number of holdings, while IYW's scale and liquidity profile support tighter bid-ask spreads for larger position adjustments.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Visit the AI Screener to explore current opportunities.
Tickeron AI Verdict
Tickeron’s AI would likely favor IYW at present due to its lower expense ratio, broader diversification across the technology value chain, and established liquidity profile. The fund’s structural characteristics align with consistent exposure to multiple growth drivers within the sector while mitigating single-industry concentration risks inherent in PSI. Probabilistic assessment based on cost efficiency and diversification profile supports this relative positioning for investors seeking durable technology allocation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is IYW is a Hold and PSI is a Hold.
IYW in upward trend: price may ascend as a result of having broken its lower Bollinger Band on November 05, 2026
IYW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 36 cases where IYW's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where IYW's RSI Oscillator exited the oversold zone, 19 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 54 cases where IYW's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 87%.
Following a +4.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYW advanced for three days, in 322 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IYW as a result. In 68 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for IYW turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 40 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
IYW moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IYW crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for IYW entered a downward trend on November 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
PSI's Indicator enters downward trend
The Aroon Indicator for PSI entered a downward trend on November 12, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 119 similar instances where the Aroon Indicator formed such a pattern. In 109 of the 119 cases the stock moved lower. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PSI as a result. In 79 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 85%.
PSI moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PSI crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PSI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PSI's RSI Oscillator exited the oversold zone, 20 of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 52 cases where PSI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Moving Average Convergence Divergence (MACD) for PSI just turned positive on November 11, 2026. Looking at past instances where PSI's MACD turned positive, the stock continued to rise in 50 of 55 cases over the following month. The odds of a continued upward trend are 90%.
Following a +16.53% 3-day Advance, the price is estimated to grow further. Considering data from situations where PSI advanced for three days, in 308 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
PSI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
| IYW | PSI | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 83% | 2 days ago 90% |
| Stochastic ODDS (%) | 2 days ago 87% | 2 days ago 90% |
| Momentum ODDS (%) | 2 days ago 81% | 4 days ago 85% |
| MACD ODDS (%) | 3 days ago 80% | 2 days ago 90% |
| TrendWeek ODDS (%) | 2 days ago 87% | 2 days ago 90% |
| TrendMonth ODDS (%) | 2 days ago 88% | 2 days ago 86% |
| Advances ODDS (%) | 5 days ago 87% | 5 days ago 89% |
| Declines ODDS (%) | 12 days ago 84% | 9 days ago 84% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 90% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 90% |
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PSI and
Correlation & Price change
A.I.dvisor indicates that over the last year, PSI has been closely correlated with ONTO. These tickers have moved in lockstep 90% of the time. This A.I.-generated data suggests there is a high statistical probability that if PSI jumps, then ONTO could also see price increases.
| Ticker / NAME | Correlation To PSI | 1D Price Change % | ||
|---|---|---|---|---|
| PSI | 100% | -1.16% | ||
| ONTO - PSI | 90% Closely correlated | -2.51% | ||
| SYNA - PSI | 83% Closely correlated | +0.10% | ||
| ACLS - PSI | 81% Closely correlated | -2.80% | ||
| GFS - PSI | 77% Closely correlated | -0.54% | ||
| AEIS - PSI | 77% Closely correlated | -1.22% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| GGRW | 36.13 | N/A | N/A |
| Gabelli Growth Innovators ETF (GGRW) | |||
| NUSB | 25.16 | N/A | N/A |
| Nuveen Ultra Short Income ETF (NUSB) | |||
| BAMO | 34.70 | -0.08 | -0.24% |
| Brookstone Opportunities ETF (BAMO) | |||
| XMVM | 73.68 | -0.62 | -0.84% |
| Invesco S&P MidCap Value with Momentum ETF (XMVM) | |||
| SMMD | 86.85 | -1.16 | -1.32% |
| iShares Russell 2500 ETF (SMMD) | |||