PSI, SMH, and SOXX stand out as premier semiconductor ETFs, offering investors targeted exposure to the high-growth chip sector amid surging AI demand and digital transformation. While all compete in the same thematic space, they diverge strategically: PSI uses a smart beta approach for U.S. semiconductor stocks, SMH provides market-cap weighted access to the largest U.S.-listed names including foreign firms, and SOXX tracks a modified cap-weighted index with weight caps for enhanced balance. These differences in index methodology, holdings concentration, and geographic tilt make them compelling for comparison, especially as capital flows into semiconductors driven by AI infrastructure, cloud computing, and automotive electrification. Investors can select based on risk tolerance, cost preferences, and views on mega-cap dominance versus broader sector participation.
The Invesco Semiconductors ETF (PSI) tracks the Dynamic Semiconductor Intellidex Index, a smart beta benchmark selecting approximately 30 U.S. companies principally engaged in semiconductor manufacturing. This index evaluates stocks on factors including price momentum, earnings momentum, quality, management action, and value, aiming for capital appreciation. The fund holds around 31 stocks, with top holdings typically including MXL, AMD, MU, TXN, and AVGO (top 10 ~50%). Sector allocation is heavily tilted toward technology (97-100%). Its expense ratio is 0.56%, higher due to the quantitative methodology. PSI is non-diversified, rebalances quarterly (February, May, August, November), and focuses exclusively on domestic issuers, reducing foreign risk exposure.
The VanEck Semiconductor ETF (SMH) seeks to replicate the MVIS US Listed Semiconductor 25 Index (MVSMHTR), targeting the largest and most liquid companies in semiconductor production and equipment. It holds about 25-26 stocks, favoring industry leaders by market cap and trading volume, including U.S.-listed foreign firms for comprehensive representation. Top holdings feature NVDA (~18%), TSM (~11%), AVGO (~8%), INTC, and AMD (top 10 ~72%). Allocation is 100% technology. Expense ratio stands at 0.35%. As a non-diversified passive ETF, it emphasizes mega-caps, resulting in high concentration but strong liquidity.
The iShares Semiconductor ETF (SOXX) tracks the NYSE Semiconductor Index, composed of 30 U.S.-listed semiconductor equities across design, manufacturing, and distribution. It features modified market-cap weighting with caps (top five at 8%, others at 4%, ADRs limited to 10%) for balance. Holdings include MU (~9.8%), AMD (~9.2%), INTC (~7.4%), AVGO (~7.3%), and NVDA (~6.6%) (top 10 ~60%). Sectors: semiconductors (81%), equipment (19%). Expense ratio is 0.34%. Non-diversified and passive, it spans the value chain with high liquidity (median bid-ask spread 0.01%).
The semiconductor sector thrives amid AI infrastructure expansion, cloud computing, and automotive electrification, with global sales projected to exceed $1 trillion by 2030 driven by generative AI and data centers. Macro drivers include hyperscaler capex surges (expected ~$600B in 2026), memory demand for high-bandwidth applications, and logic chips for servers. Regulatory shifts like the CHIPS and Science Act bolster U.S. manufacturing via subsidies, enhancing supply chain resilience against geopolitical tensions. Capital flows heavily into AI enablers, though risks persist from trade restrictions, workforce shortages, and potential demand moderation post-boom. Earnings growth in holdings like NVDA and AMD underscores momentum, balanced by cyclical vulnerabilities.
In recent months, these ETFs have rallied on AI tailwinds, with PSI often leading in uptrends due to its momentum tilt and mid-cap exposure, delivering higher returns (e.g., YTD ~92%) but amplified volatility from factor sensitivity. SMH's mega-cap concentration boosts trend consistency during NVDA-led surges yet heightens drawdowns in rotations. SOXX balances with weight caps, showing smoother volatility, moderate drawdowns, and resilience via memory/equipment names like MU. Relative differences stem from structure: PSI thrives in broad cycles, SMH in leader-driven rallies, SOXX in diversified recoveries—all hypersensitive to macro factors like interest rates and capex.
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 (market cap), technical indicators, price patterns, and performance metrics. It identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to uncover semiconductor insights and beyond.
Tickeron’s AI currently favors SOXX, owing to its lowest expense ratio (0.34%), balanced diversification via weight caps mitigating concentration risk, stable momentum in recent cycles, and optimal risk-adjusted positioning across the semiconductor value chain. While PSI offers factor-driven upside and SMH mega-cap growth, SOXX provides probabilistic edge for sustained exposure amid volatility.
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| PSI | SMH | SOXX | |
| Gain YTD | 116.150 | 72.729 | 100.581 |
| Net Assets | 3.02B | 78.4B | 47B |
| Total Expense Ratio | 0.56 | 0.35 | 0.34 |
| Turnover | 78.00 | 12.00 | 27.00 |
| Yield | 0.05 | 0.18 | 0.29 |
| Fund Existence | 21 years | 15 years | 25 years |
| PSI | SMH | SOXX | |
|---|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 2 days ago 81% | 2 days ago 88% |
| Stochastic ODDS (%) | 2 days ago 90% | 2 days ago 85% | 2 days ago 90% |
| Momentum ODDS (%) | 2 days ago 88% | 2 days ago 89% | 2 days ago 88% |
| MACD ODDS (%) | 2 days ago 89% | 2 days ago 90% | 2 days ago 88% |
| TrendWeek ODDS (%) | 2 days ago 85% | 2 days ago 86% | 2 days ago 87% |
| TrendMonth ODDS (%) | 2 days ago 90% | 2 days ago 90% | 2 days ago 90% |
| Advances ODDS (%) | 3 days ago 89% | 3 days ago 90% | 3 days ago 89% |
| Declines ODDS (%) | 15 days ago 82% | 15 days ago 82% | 15 days ago 85% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 77% | 2 days ago 88% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 90% | 2 days ago 90% |
A.I.dvisor indicates that over the last year, PSI has been closely correlated with LRCX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if PSI jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To PSI | 1D Price Change % | ||
|---|---|---|---|---|
| PSI | 100% | -7.60% | ||
| LRCX - PSI | 86% Closely correlated | -9.33% | ||
| TER - PSI | 84% Closely correlated | -8.07% | ||
| SYNA - PSI | 83% Closely correlated | -6.52% | ||
| AMAT - PSI | 83% Closely correlated | -8.48% | ||
| KLAC - PSI | 83% Closely correlated | -9.17% | ||
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A.I.dvisor indicates that over the last year, SMH has been closely correlated with LRCX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if SMH jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To SMH | 1D Price Change % | ||
|---|---|---|---|---|
| SMH | 100% | -7.01% | ||
| LRCX - SMH | 86% Closely correlated | -9.33% | ||
| KLAC - SMH | 83% Closely correlated | -9.17% | ||
| AMAT - SMH | 83% Closely correlated | -8.48% | ||
| TSM - SMH | 81% Closely correlated | -6.69% | ||
| ASML - SMH | 80% Closely correlated | -7.82% | ||
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