Semiconductor Leveraged ETF Continues to Attract Capital: Net Inflows of Nearly $7 Billion to SOXL in Two Months

BlockBeats News, August 26: Despite a significant pullback in global chip stocks since late June, funds have flowed into a leveraged semiconductor ETF against the trend. Data shows that the Direxion Daily Semiconductor Bull 3X Shares (SOXL) attracted nearly $7 billion in net inflows in July and the first two weeks of August, exhibiting a clear "buying the dip" trend.

As of August 24, SOXL was trading at $111.16, down over 60% from its previous high of $302. This ETF tracks the NYSE Semiconductor Index, with constituents including Nvidia, Micron Technology, AMD, and Broadcom.

Semiconductors remain one of the most crowded trades globally. A Bank of America fund manager survey in August showed that 53% of respondents chose to "overweight global semiconductors," a significant drop from the historical peak of 82% the previous month.

There is a divergence in institutional views on the industry outlook. Fidelity warned that the semiconductor's approximately 40-month profit cycle may be nearing its peak, suggesting that daily reset leverage products like SOXL could magnify losses once the industry cycle reverses.

Goldman Sachs, on the other hand, significantly raised its expectations for global wafer fab equipment spending from 2026 to 2028 to $150 billion, $218 billion, and $281 billion, believing that the AI-driven semiconductor supercycle is expected to continue until 2028. JPMorgan also maintains a bullish view, stating that the semiconductor sector, after the recent pullback, is attractive.