Get all your news in one place.
100's of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Radhika Anilkumar Nadig

Semiconductor ETFs Draw Record $7.1 Billion as Investors Buy the AI Chip Dip

Small,Semiconductor,On,A,Circuit,Board.,Extreme,Closeup,Of,A

U.S. semiconductor exchange-traded funds attracted a record $7.1 billion in fresh capital on Tuesday as investors aggressively bought the dip in artificial intelligence-linked chip stocks.

SOXX Sees Record Daily Inflow

According to Bloomberg data highlighted by The Kobeissi Letter on Thursday, the iShares Semiconductor ETF (NASDAQ:SOXX) attracted $5.4 billion in inflows on Tuesday, the largest single-day intake since the fund launched in 2001.

The market commentator said the inflow exceeded the previous daily record by more than 300%, while SOXX has attracted $13.3 billion in net inflows so far this year.

SOXX, which provides exposure to Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD), Broadcom Inc. (NASDAQ:AVGO), Micron Technology Inc. (NASDAQ:MU) and Intel Corp. (NASDAQ:INTC), has $43.22 billion in assets under management and charges an expense ratio of 0.34%.

Shares have climbed 85.44% year-to-date and 138.28% over the past year.

The inflows come as investors continue betting on long-term demand for AI infrastructure, with spending on semiconductors, networking equipment and data centers remaining elevated despite recent volatility in technology stocks.

Read Also: Don't Want Tesla or SpaceX in Your Portfolio? Meet the New 'Ex-Elon' ETFs

Leveraged Semiconductor ETFs Join the Rally

The Direxion Daily Semiconductor Bull 3X ETF (NYSE:SOXL) attracted $1.2 billion in inflows, marking its second-largest daily intake of the year.

The fund has $12.44 billion in assets and charges an expense ratio of 0.75%. It has returned 307.39% so far this year and 603.14% over the past year.

Other semiconductor ETFs in focus

The VanEck Semiconductor ETF (NASDAQ:SMH) holds $68.80 billion in assets and charges an expense ratio of 0.35%. The fund rose 62.80% year-to-date and 111.37% over the past year.

The State Street SPDR S&P Semiconductor ETF (NYSE:XSD) has returned 69.81% year to date and 112.90% over the past year, while the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) has gained 1.83% year to date and 21.22% over the past 52 weeks.

Price Action: SOXX closed 3.50% higher at $581.70 on Thursday and gained another 3.82% in after-hours trading.

Benzinga edge rankings indicate SOXX has a Momentum score in the 96th percentile and a positive price trend across the short, medium and long term.

Read Also: CENTCOM Rejects Iran's Authority Over Strait of Hormuz, Says US Facilitated Transit of 800 Commercial Vessels Since May

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.