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PSI - ETF AI Analysis

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PSI

Invesco Dynamic Semiconductors ETF (PSI)

Rating:72Outperform
Price Target:
PSI, the Invesco Dynamic Semiconductors ETF, earns a solid overall rating driven by strong, growing semiconductor leaders like Micron, Lam Research, KLA, Broadcom, and Nvidia, all benefiting from powerful trends in AI, data centers, and advanced chip manufacturing. These companies’ healthy financial results and positive outlooks help support the fund, while weaker names like Maxlinear, with profitability and cash flow challenges, slightly weigh on the rating. The main risk is the fund’s heavy concentration in the semiconductor industry, which makes it sensitive to sector downturns, export controls, and valuation pressures.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum in its semiconductor holdings.
Leading Semiconductor Holdings
Many of the top positions, including well-known chip designers and equipment makers, have delivered strong year-to-date performance that supports the fund’s returns.
Meaningful Fund Size
With over a billion dollars in assets, the ETF is large enough to offer good trading liquidity for most everyday investors.
Negative Factors
High Sector Concentration
Almost all of the fund is invested in technology, especially semiconductors, which makes it very sensitive to downturns in this single industry.
Limited Geographic Diversification
The ETF is almost entirely focused on U.S. companies, offering little protection if the U.S. market or domestic chip industry faces challenges.
Above-Average Expense Ratio
The fund’s fee is higher than many broad market index ETFs, which slightly reduces the net return investors keep over time.

PSI vs. SPDR S&P 500 ETF (SPY)

PSI Summary

The Invesco Dynamic Semiconductors ETF (PSI) is a fund that focuses on semiconductor companies, the makers of computer chips that power phones, computers, cars, and data centers. It follows the Dynamic Semiconductor Intellidex Index, which picks chip stocks it believes have strong growth potential. Well-known holdings include Nvidia and Advanced Micro Devices (AMD). Investors might consider PSI if they want targeted growth exposure to key technology trends like artificial intelligence and 5G. However, because it is heavily concentrated in semiconductor and tech stocks, its price can rise and fall sharply with changes in the tech sector.
How much will it cost me?The Invesco Dynamic Semiconductors ETF (PSI) has an expense ratio of 0.56%, meaning you’ll pay $5.60 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on a specific sector with a unique stock selection strategy. Active management often involves higher costs due to more research and trading activity.
What would affect this ETF?The Invesco Dynamic Semiconductors ETF (PSI) could benefit from growing demand for advanced technologies like AI, 5G, and IoT, which rely heavily on semiconductors. However, it may face challenges from global economic slowdowns, regulatory changes, or supply chain disruptions affecting the semiconductor industry. Its focus on U.S.-based companies and top holdings like Nvidia and AMD makes it sensitive to shifts in technology trends and geopolitical factors impacting North America.

PSI Top 10 Holdings

PSI is a pure play on U.S.-listed chipmakers, and its story is all about semiconductors. Heavyweights like AMD, Broadcom, and Nvidia are doing much of the lifting, with AMD and Broadcom riding strong demand for AI-related chips while Nvidia’s once-blistering run looks a bit more mixed lately. Equipment makers such as KLA, Lam Research, and Applied Materials are steadily powering the picks-and-shovels side of the boom. The wild card is MaxLinear, which has shaky fundamentals but a sharply rising stock price, adding both spice and risk to the mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Advanced Micro Devices6.05%$118.25M$567.05B247.16%
73
Outperform
Maxlinear5.97%$116.68M$5.40B408.87%
60
Neutral
Broadcom4.96%$97.09M$2.00T117.28%
76
Outperform
Texas Instruments4.88%$95.48M$252.33B65.91%
78
Outperform
KLA4.88%$95.46M$253.63B173.88%
77
Outperform
Micron4.85%$94.85M$560.17B567.72%
79
Outperform
Nvidia4.34%$84.89M$5.06T99.22%
76
Outperform
Applied Materials4.14%$80.98M$330.97B168.49%
77
Outperform
Lam Research4.11%$80.29M$334.88B262.54%
77
Outperform
Tower3.40%$66.53M₪66.68B452.23%
76
Outperform

PSI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
104.80
Positive
100DMA
96.75
Positive
200DMA
82.78
Positive
Market Momentum
MACD
8.43
Negative
RSI
72.32
Negative
STOCH
66.14
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PSI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 117.35, equal to the 50-day MA of 104.80, and equal to the 200-day MA of 82.78, indicating a bullish trend. The MACD of 8.43 indicates Negative momentum. The RSI at 72.32 is Negative, neither overbought nor oversold. The STOCH value of 66.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSI.

PSI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.92B0.56%
72
Outperform
$4.52B0.40%
71
Outperform
$2.97B0.55%
73
Outperform
$2.31B0.35%
66
Neutral
$2.06B0.60%
74
Outperform
$1.56B0.19%
75
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSI
Invesco Dynamic Semiconductors ETF
133.68
85.80
179.20%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
XSD
SPDR S&P Semiconductor ETF
FTXL
First Trust Nasdaq Semiconductor ETF
SOXQ
Invesco PHLX Semiconductor ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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