Invesco Semiconductors ETF (PSI) Covered Calls

The Invesco Semiconductors ETF (PSI) tracks the Dynamic Semiconductor Intellidex Index, providing targeted exposure to 30 U.S. semiconductor companies. Rather than relying on simple market-cap weighting, the fund uses a proprietary multi-factor methodology to select and weight holdings based on price momentum, earnings momentum, quality, management action, and value. It focuses on manufacturers and equipment providers essential to the semiconductor industry.

You can sell covered calls on Invesco Semiconductors ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PSI (prices last updated Mon 4:16 PM ET):

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Core Business and Products

The Invesco Semiconductors ETF (PSI) offers a sophisticated approach to the semiconductor industry, moving beyond simple market-cap weighting. The fund tracks the Dynamic Semiconductor Intellidex Index, which employs a quantitative model to select 30 U.S. semiconductor companies based on five "superfactors": price momentum, earnings momentum, quality, management action, and value. This strategy aims to identify companies with high capital appreciation potential rather than simply holding the largest firms by market value.

The portfolio includes a mix of industry giants and smaller, more agile firms involved in every stage of the chip lifecycle. This spans from integrated device manufacturers and fabless designers to the companies that provide the essential lithography and testing equipment required for fabrication. Because the semiconductor sector is the backbone of emerging technologies like artificial intelligence, 5G, and autonomous vehicles, PSI serves as a high-growth vehicle for investors looking to capitalize on the increasing digitization of the global economy.

Competitive Landscape

PSI competes in the highly active semiconductor ETF space, where liquidity and methodology are key differentiators. Its most prominent rivals are the VanEck Semiconductor ETF and the iShares Semiconductor ETF, both of which track market-cap-weighted indices and are among the most liquid options for semiconductor exposure. Another competitor is the SPDR S&P Semiconductor ETF, which, like PSI, avoids mega-cap concentration through an alternative weighting scheme.

Within its own portfolio, PSI is influenced by the performance of leading semiconductor firms with robust options markets, including NVIDIA Corporation, Broadcom Inc., and Advanced Micro Devices, Inc.. The fund also holds significant positions in equipment providers like Applied Materials, Inc. and memory specialists such as Micron Technology, Inc.. These companies compete globally for market share in the high-stakes race for more powerful and energy-efficient processing units.

Strategic Outlook and Innovation

The strategic outlook for PSI is heavily tied to the "AI Supercycle" and the global push for semiconductor self-sufficiency. As governments invest billions into domestic chip manufacturing, the U.S.-focused companies within PSI are positioned to benefit from new fabrication facilities and increased research subsidies. The fund’s quarterly rebalancing ensures that it can quickly pivot toward the firms most effectively capturing these tailwinds while maintaining its focus on financial quality and momentum.

Innovation in the semiconductor space is currently dominated by advanced packaging and the development of next-generation 3nm and 2nm process nodes. Many companies in the PSI portfolio are at the forefront of these technological leaps, which are necessary to power the next generation of data centers and consumer devices. By evaluating "management action" as a core factor, the fund attempts to favor companies that are making the most effective capital investments in these future technologies, aiming to deliver superior risk-adjusted returns compared to traditional tech benchmarks.

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