Semiconductor stocks are among the top-performing equities in 2023 and have maintained a strong five-year track record.
The Invesco PHLX Semiconductor ETF (SOXQ) and the Invesco Dynamic Semiconductors ETF (PSI) have climbed 22.1% and 18.2% year-to-date, respectively. Semiconductor stocks are a solid investment, as they are an essential part in electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, and clean energy.
Over the past one-month period, SOXQ is up 2.5%, outpacing the broad U.S. market, and PSI is down 0.5%.
Notably, five of the 10 top-performing ETFs by five-year returns are semiconductor funds. PSI is the tenth top-performing ETF over a five-year period, returning 120.4% during that period, according to ETF Database. SOXQ was incepted in 2021 and has not yet amassed a five-year track record.
See more: TAN Jumps 17% Last Month, Remains Top ETF by 5-Year Returns
SOXQ is based on the PHLX Semiconductor Sector Index, which 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 in personal household products, automobiles, and computers, among others.
SOXQ charges 19 basis points and has $93 million in assets under management.
PSI is based on the Dynamic Semiconductor Intellidex℠ Index, which 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 is comprised of common stocks of 30 U.S. semiconductors companies.
PSI has accreted $536 million in assets since its inception in 2005. The pricier of the two offerings, PSI, charges 56 basis points.
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