As the market value of chip stocks evaporates 1 trillion dollars, ETF investors are taking advantage of the decline to invest billions of dollars. One of these funds provides three times the semiconductor industry's daily revenue exposure. The scale of capital inflows this week is expected to set a record. According to compiled data, the $72 billion Vaneck semiconductor ETF has attracted more than US$430 million in capital inflows over the past three trading days, which is expected to be the largest weekly capital inflow since the beginning of September. Some investors are more aggressive. Despite the three-times leveraged Direxion Daily Semiconductor bullish 3x ETF's cumulative decline of nearly 21% this week, there are still about $3.8 billion in capital inflows. For this $19 billion fund, this inflow was enough to set a record for the highest single week in history. However, the market background is not optimistic. As investors continue to worry about artificial intelligence spending and increased global competition, the Philadelphia Semiconductor Index has accumulated a cumulative decline of 12% over the past six trading days, and the market value evaporated by about 1 trillion US dollars. Overvaluation and concerns about rising interest rates have further exacerbated the sector's volatility. Todd Sohn, chief ETF strategist at Baird Strategies, said, “The pullback in semiconductor stocks is once again accelerating, but this still hasn't really curbed investors' demand to use leverage to buy on dips.”
Zhitongcaijing · 1d ago
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As the market value of chip stocks evaporates 1 trillion dollars, ETF investors are taking advantage of the decline to invest billions of dollars. One of these funds provides three times the semiconductor industry's daily revenue exposure. The scale of capital inflows this week is expected to set a record. According to compiled data, the $72 billion Vaneck semiconductor ETF has attracted more than US$430 million in capital inflows over the past three trading days, which is expected to be the largest weekly capital inflow since the beginning of September. Some investors are more aggressive. Despite the three-times leveraged Direxion Daily Semiconductor bullish 3x ETF's cumulative decline of nearly 21% this week, there are still about $3.8 billion in capital inflows. For this $19 billion fund, this inflow was enough to set a record for the highest single week in history. However, the market background is not optimistic. As investors continue to worry about artificial intelligence spending and increased global competition, the Philadelphia Semiconductor Index has accumulated a cumulative decline of 12% over the past six trading days, and the market value evaporated by about 1 trillion US dollars. Overvaluation and concerns about rising interest rates have further exacerbated the sector's volatility. Todd Sohn, chief ETF strategist at Baird Strategies, said, “The pullback in semiconductor stocks is once again accelerating, but this still hasn't really curbed investors' demand to use leverage to buy on dips.”
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