Generated September 19, 2026.
Overview
PSI and SOXX are both semiconductor-focused ETFs that track US-listed chipmakers, but they differ in structure, fee efficiency, and scale. Both carry high beta—around 2.3–2.4—reflecting the sector's volatility relative to the broader market.
How they differ
The biggest structural difference is index methodology and fund size. SOXX explicitly tracks the ICE Semiconductor Index and holds $42.3B, making it roughly 17 times larger than PSI. That scale advantage typically translates to tighter spreads and more reliable liquidity in the secondary market.
On cost, SOXX pulls ahead with an expense ratio of 0.33% versus PSI's 0.55%—a 22 basis point gap that compounds over years. Both distribute quarterly, but SOXX yields 0.23% compared to PSI's 0.04%, a negligible practical difference in a growth-oriented sector where most returns come from price appreciation rather than dividends.
Risk exposure is nearly identical: both funds report a beta around 2.3, meaning a 10% move in the broader market typically triggers a 23% move in either fund. The overlap in holdings is likely substantial given the narrow sector focus, so performance patterns should behave similarly despite different issuer methodologies.
Who each is best for
PSI: Fits investors seeking a smaller, actively-allocated semiconductor exposure or those building a portfolio concentrated within Invesco's fund ecosystem, though the cost disadvantage and lower AUM mean it appeals mainly to investors with specific issuer preferences.
SOXX: Designed for investors building a straightforward, low-cost index-tracking position in US semiconductors; the larger AUM and lower fee structure align well with buy-and-hold semiconductor allocations.
Key risks to know
- Sector concentration: Both funds are narrowly focused on semiconductors, a cyclical industry sensitive to macro weakness, inventory swings, and geopolitical supply-chain disruption. A downturn in chip demand or orders can drive sharp losses across both holdings simultaneously.
- High beta volatility: With beta around 2.33–2.37, these funds amplify market moves in both directions. A 20% market decline would historically translate to roughly a 45% drop in either fund, exposing investors to significant drawdown risk if held through downturns.
- Overlapping holdings risk: Given the narrow universe of US-listed semiconductor companies, PSI and SOXX likely hold many of the same large-cap names. Portfolio overlap is not disclosed here, but concentration in a handful of mega-cap chipmakers is probable and worth verifying before holding both. If you have a specific reason to favor Invesco's methodology or fund ecosystem, PSI delivers similar sector exposure at a measurable cost penalty. Both carry substantial volatility inherent to semiconductors; past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
