PSI vs SMH

PSIBInvesco Semiconductors ETF

SMHAVanEck Semiconductor ETF

In short

PSI Most chip ETFs rank the giants by size. PSI runs a quant screen instead: roughly 30 US semiconductor stocks picked on momentum, earnings, quality, management action and value, reshuffled quarterly. 0.55% a year.

SMH Chip exposure, undiluted. SMH tracks roughly 25 of the largest, most liquid US-listed semiconductor names (foreign chipmakers included) and trades like a household ticker in its category.

Stated mandate

PSI The fund seeks capital appreciation and normally invests at least 90% of total assets in common stocks comprising the Dynamic Semiconductor Intellidex Index.

SMH The Fund aims to track, before fees and expenses, the price and yield performance of the MVIS US Listed Semiconductor 25 Index.

Why people hold it

• PSI The index scores US chip companies on price momentum, earnings momentum, quality, management action and value, then holds roughly 30 of them.invesco.comsec.gov
• The roster is rebalanced and reconstituted every quarter, so the screen keeps re-sorting the group instead of letting one ranking sit for years.invesco.com
• Built from US semiconductor companies, so it is a domestic chip sleeve rather than a global one.sec.gov
• Running since 2005, now a multi-billion-dollar fund in a crowded category, and it pays quarterly.

• SMH The index rule is simple: the 25 largest, most liquid US-listed chip stocks, each earning over half its revenue from semiconductors or semi equipment. No tech-adjacent filler.marketvector.com
• Depositary receipts count, so US-listed foreign chipmakers are in scope. That reaches parts of the supply chain a domestic-only screen leaves out.sec.gov
• Single-name weights are capped at 20%, so the giants of the industry carry real weight rather than being trimmed toward sector-average size.marketvector.com
• One of the most actively traded funds in its peer group, a multi-billion-dollar book, and VanEck has run it since 2011.

Worth knowing

• PSI At 0.55% it costs more than the typical semiconductor ETF; index rivals CHPS (0.15%) and SOXQ (0.19%) charge less for cap-weighted exposure.
• One industry, roughly 30 names, and the fund is non-diversified, so a few stocks can steer results and chip cycles swing hard.sec.gov
• The quarterly re-sort means the portfolio can look quite different from a cap-weighted chip index, in either direction.invesco.com

• SMH Fees sit mid-pack: 0.35% matches the semiconductor cohort median but runs above SOXQ at 0.19% and CHPS at 0.15%.
• Roughly 25 names with a 20% cap is concentration by design: the largest holdings drive most of the fund's day-to-day movement.marketvector.com
• Built as a single-industry chip sleeve, not an income holding. Distributions come once or twice a year.

Full PSI profile⁠

Full SMH profile⁠