PANews October 15 news: As chip stocks shed $1 trillion in market value, ETF investors are pouring billions of dollars into the decline, with one fund that offers triple the daily return exposure to the semiconductor industry on track for a record weekly inflow. Compiled data shows that the $72 billion VanEck Semiconductor ETF attracted more than $430 million in inflows over the past three trading days, putting it on pace for its largest weekly inflow since early September.
Some investors are even more aggressive: despite the triple-leveraged Direxion Daily Semiconductor Bull 3X ETF falling nearly 21% this week, about $3.8 billion still flowed in. For this $19 billion fund, that inflow is enough to make it the largest single-week record in its history. However, the market backdrop is not optimistic. As investors continue to worry about AI spending and intensifying global competition, the Philadelphia Semiconductor Index has fallen 12% over the past six trading days, wiping out about $1 trillion in market value. Concerns about excessive valuations and rising interest rates have further exacerbated the sector's volatility. Todd Sohn, chief ETF strategist at Baird Strategas, said: "The pullback in semiconductor stocks has accelerated again, but this still has not really dampened investors' demand to use leverage to buy the dip."