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PSI has surged as an AI-driven way to diversify semiconductor exposure
PSI gained 131% over the last year, and it charges a 0.56% expense ratio with about $2.6 billion in assets.
Semiconductor ETF PSI has delivered standout performance in 2026 as investors look beyond mega-cap chip names to capture broader exposure to the AI investment cycle. ETF Trends highlights that PSI gained 131% over the last year, outperforming the iShares Semiconductor ETF, SOXX, which rose 112% as of August 19.
PSI tracks the Dynamic Semiconductor Intellidex Index, a rules based index that selects about 30 U.S. semiconductor companies using five factors: price momentum, earnings momentum, quality, management action, and value. The portfolio rebalances and reconstitutes quarterly.
ETF Trends says PSI’s top holdings reflect more than one dominant GPU maker, with NVIDIA at a 5.89% weight, while equipment manufacturers such as AMAT, LRCX, KLAC, COHU, and ONTO plus memory supplier MU account for more than 30.3% of its top 10.
The outlet also notes PSI is not a new AI themed fund, having launched in 2005, and that its long run history underscores semiconductor investing’s cyclical nature. PSI’s 76.9% year to date return is cited alongside the fund’s higher risk from concentrated factor exposure, including the possibility of sharp losses if momentum fades.
ETF Trends adds that PSI’s design is intended to benefit when semiconductor spending rises and earnings expectations improve, while its quarterly reconstitution and factor focus can amplify volatility when those conditions shift. The fund carries a 0.56% expense ratio and has about $2.6 billion in assets under management.