"When even established players can't maintain consistent profitability through industry cycles, individual investors face an impossible prediction game. PSI spreads risk across the chip supply chain rather than betting heavily on a few names. With the top five holdings representing just 27% of assets, the fund avoids the concentration trap that plagues some competitors where three-quarters of the portfolio rides on a handful of stocks. This structure means semiconductor exposure survives even when individual companies stumble."
"Strong Returns With Less Guesswork Semiconductor demand has surged over the past year, driven by AI infrastructure buildout and data center expansion. PSI captured this momentum with 46% returns compared to the broader market's 14% gain. The fund's success stems from sector exposure rather than betting on individual winners, allowing investors to ride the chip industry's wave without predicting which specific companies will dominate."
PSI tracks the Dynamic Semiconductor Intellidex Index and selects 30 semiconductor companies using quantitative evaluations of momentum, quality, value, and management. The fund rebalances quarterly and weights holdings to spread risk across the chip supply chain rather than by market cap. Semiconductor earnings experience severe boom-bust cycles and large analyst estimate misses that create extreme volatility for individual stocks. PSI limits concentration risk — its top five holdings represent roughly 27% of assets — and captured recent sector momentum from AI infrastructure and data-center demand, delivering significantly stronger returns than the broader market.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]