Highly concentrated semiconductor ETF portfolio with powerful historic growth and sharp swings in value
Report created on May 7, 2026Risk profile
6/7
Diversification profile
1/5
Positions
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PS Invesco Dynamic Semiconductors ETF
PSI - US46137V6478 100.00%
This portfolio is as simple and concentrated as it gets: one single ETF focused on semiconductor companies makes up 100% of the holdings. That means there is no built‑in balance across different industries or asset types such as bonds or cash. A structure like this can create very clear exposure to one powerful theme, which makes it easy to understand what’s driving results. At the same time, it leaves performance heavily tied to the fortunes of that one segment. The diversification score of 1/5 reflects this single‑focus setup, and the aggressive risk label matches the expectation of large ups and downs along the way.
Growth
Historically, the portfolio’s performance has been extremely strong. From 2016 to 2026, $1,000 grew to about $18,463, which is a compound annual growth rate (CAGR) of 33.95%. CAGR is like the average yearly “speed” of growth over the whole trip. This far exceeds both the US market (15.22%) and global market (12.67%) benchmarks. The trade‑off has been a deep max drawdown of -44.84%, meaning the portfolio once fell almost half from a prior peak. That’s steeper than the roughly -34% drawdowns in the benchmarks. Only 51 days generated 90% of returns, underlining how a few strong days have driven most of the long‑term gains.
Projection
The forward projection uses a Monte Carlo simulation, which runs many random “what if” paths based on past return patterns to show a range of possible futures. Over 15 years, the median outcome turns $1,000 into about $2,778, implying around 8.08% annualized across all simulations. The likely middle band (from a quarter worst to a quarter best) runs from about $1,859 to $4,171, while extreme 5%–95% outcomes span roughly $980 to $7,288. This wide spread reflects the portfolio’s high uncertainty. It’s important to remember that Monte Carlo results are not predictions; they simply extrapolate history, and real markets can behave very differently.
Asset classes
- Stocks 100%
By asset class, the portfolio is 100% in stocks, with no allocation to bonds, cash, or other assets. Equities typically offer higher long‑term growth potential but also larger short‑term price swings than more defensive assets. Many broad market indices mix stocks with other asset classes to soften volatility, but this portfolio does not have that buffer. Being fully equity‑based means it captures the full impact of market rallies and corrections. The aggressive risk score of 6/7 is consistent with this equity‑only profile, and it’s normal for a setup like this to experience both strong up years and sharp drawdowns.
Sectors
- Technology 98%
- Industrials 2%
Sector‑wise, the portfolio is overwhelmingly tilted toward technology, with roughly 98% in that category and a small 2% slice in industrials. This is far more concentrated than broad market benchmarks, where no single sector usually dominates to this degree. Semiconductor‑heavy portfolios can react strongly to shifts in demand for chips, changes in capital spending, and interest‑rate moves, all of which can influence valuations. This level of sector focus means performance is closely tied to the semiconductor cycle. When the sector is in favor, returns can be powerful; when it enters a downturn, the lack of exposure to other sectors can make declines feel particularly intense.
Regions
- North America 94%
- Africa/Middle East 4%
- Asia Emerging 2%
Geographically, the portfolio is dominated by North America at 94%, with smaller exposures to Africa/Middle East (4%) and emerging Asia (2%). This differs from global benchmarks that spread more heavily across multiple regions. A North America‑heavy stance means results are closely linked to the economic, regulatory, and currency environment of that region. It also reflects where many major semiconductor companies are listed. While the modest non‑US exposure adds some variety, it is relatively small. So, macro events, policy changes, and sentiment shifts in North American markets are likely to have a significant impact on the portfolio’s performance over time.
Market capitalization
- Small-cap 27%
- Mid-cap 25%
- Large-cap 25%
- Mega-cap 20%
- Micro-cap 3%
The portfolio spans the full spectrum of company sizes: about 20% in mega‑caps, 25% in large‑caps, 25% in mid‑caps, 27% in small‑caps, and even 3% in micro‑caps. Market capitalization simply refers to a company’s total market value, and smaller firms often have more volatile and less predictable stock prices than their larger peers. Compared with typical broad indices that lean heavily to large and mega‑caps, this mix has a stronger tilt toward smaller names. That can mean more upside potential when the smaller end of the market is thriving, but it can also lead to sharper drops if sentiment toward riskier, less established companies turns negative.
True holdings
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MX MaxLinear Inc 8.73%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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AM Advanced Micro Devices Inc 5.97%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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MU Micron Technology Inc 5.16%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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TX Texas Instruments Incorporated 4.92%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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AV Broadcom Inc 4.78%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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KL KLA Corporation 4.26%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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LR Lam Research Corp 3.96%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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AM Applied Materials Inc 3.87%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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NV NVIDIA Corporation 3.85%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
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TS Tower Semiconductor Ltd 3.48%
Part of fund(s):- Invesco Dynamic Semiconductors ETF
- Top 10 total 48.99%
Looking through the ETF’s top holdings gives a sense of the underlying drivers. Roughly half of the ETF’s weight is captured in the top 10 holdings, with the rest spread across smaller positions. MaxLinear is currently the largest look‑through exposure at about 8.73%, followed by familiar semiconductor names like AMD, Micron, Texas Instruments, Broadcom, KLA, Lam Research, Applied Materials, NVIDIA, and Tower Semiconductor. Because these appear within a single ETF rather than across multiple overlapping funds, hidden duplication is limited. Still, around 51% of the ETF is beyond the top 10, so the full risk and return profile is also shaped by a longer tail of smaller holdings not listed here.
Factors
On investment factors, this portfolio shows notable tilts. Factor exposure describes how much the holdings lean into characteristics like value, size, or low volatility that research links to returns. Here, value exposure is very low at 9%, meaning the portfolio is tilted away from cheaper, more “bargain‑priced” stocks and more toward higher‑valuation names. Size exposure is very high at 96%, reflecting the strong presence of smaller companies relative to the broad market. Low volatility is extremely low at 5%, signaling a preference for more volatile stocks. Together, these tilts help explain the portfolio’s powerful upside historically and its willingness to experience large swings.
Risk contribution
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Invesco Dynamic Semiconductors ETF
Weight: 100.00% 100.0%
Risk contribution measures how much each holding adds to the portfolio’s overall ups and downs, which can differ from its simple weight. In this case, because there is only one ETF, it naturally contributes 100% of both weight and risk. That means there is no diversification across different funds or asset types to smooth the ride. In more complex portfolios, one position can drive an outsized share of volatility even at a modest allocation, but here the link is one‑to‑one. The aggressive risk rating captures that the ETF’s inherent volatility directly becomes the portfolio’s volatility without any internal offset.
Dividends
- Invesco Dynamic Semiconductors ETF 0.10%
- Weighted yield (per year) 0.10%
The dividend yield on this portfolio is very low, at around 0.10%. Dividend yield is the cash income paid out each year as a percentage of the investment’s value. In this case, almost all of the historical return has come from price movements rather than regular cash payouts. That’s common in growth‑oriented areas where companies often reinvest profits instead of paying large dividends. For an investor tracking this portfolio, it means total return has been dominated by capital gains and losses, and any cash flow from dividends has been minimal. Income stability is not a defining feature of this strategy.
Ongoing product costs
- Invesco Dynamic Semiconductors ETF 0.57%
- Weighted costs total (per year) 0.57%
The ETF’s ongoing cost, or TER (Total Expense Ratio), is 0.57% per year. TER is the annual fee charged by the fund, expressed as a percentage of the amount invested. While this is higher than some broad market index ETFs, it’s not unusual for more specialized, actively managed, or theme‑focused strategies. Over long periods, fees compound, so even seemingly small percentages can add up. Here, the strong historical gross returns have comfortably outweighed the drag from costs. At the same time, lower costs always make it easier for any portfolio to keep more of what it earns, especially if future returns are more modest than in the past.
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