Semiconductor ETFs have provided attractive returns for investors in 2023.
The Invesco PHLX Semiconductor ETF (SOXQ) and the Invesco Dynamic Semiconductors ETF (PSI) have climbed 27.5% and 19.8% year to date, respectively. Over one month, SOXQ has climbed 6.5% and PSI has increased 3.8%.
Semiconductor stocks are an essential part of electronic devices, positioning them for long-term demand. Semiconductors are essential for advances in communications, computing, healthcare, military systems, transportation, and clean energy.
Semiconductor ETFs Performance YTD
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Despite near-term uncertainty in the technology sector, semiconductor ETFs are likely to continue to benefit from newer innovations in technology like electric vehicles and artificial intelligence — especially as AI like ChatGPT dominates headlines, VettaFi’s associate director of research Roxanna Islam wrote in March.
Comparing the 2 Semiconductor ETFs
SOXQ is based on the PHLX Semiconductor Sector Index. The index measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. Semiconductors include products such as memory chips, microprocessors, integrated circuits, and related equipment that serve a wide variety of purposes in various types of electronics, including personal household products, automobiles, and computers, among others.
SOXQ charges 19 basis points and has $111 million in assets under management.
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PSI is based on the Dynamic Semiconductor Intellidex℠ Index, The index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The index comprises 30 U.S. semiconductors companies.
PSI has accreted $536 million in assets since its inception in 2005. The pricier of the two semiconductor ETFs, PSI charges 56 basis points.
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