Odaily Planet Daily reports that as chip stocks have lost $1 trillion in market value, ETF investors are pouring billions of dollars into the market amid the decline; one fund offering triple daily exposure to the semiconductor industry is on track to record its largest weekly inflow in history.
Aggregated data shows that the $72 billion VanEck Semiconductor ETF attracted over $430 million in inflows over the past three trading days, potentially marking its largest weekly inflow since early September. Some investors have taken a more aggressive stance: despite the triple-leveraged Direxion Daily Semiconductor Bull 3x ETF falling nearly 21% this week, it still saw approximately $3.8 billion in inflows—a volume sufficient to set a new all-time weekly high for the $19 billion fund.
However, the market backdrop is not optimistic. Over the past six trading days, the Philadelphia Semiconductor Index has fallen 12% amid persistent investor concerns over AI spending and intensifying global competition, erasing approximately $1 trillion in market value. Concerns over elevated valuations and rising interest rates have further heightened volatility in the sector. “The correction in semiconductor stocks has accelerated again, but this has still failed to truly dampen investor demand for leveraged buying on dips,” said Todd Sohn, Chief ETF Strategist at Baird Strategas.