Direxion’s 3X Semiconductor ETF Could Set a Weekly Inflow Record

Investors sent about $3.8 billion into the Direxion Daily Semiconductor Bull 3X ETF as it fell nearly 21%, a weekly total that could become the fund’s largest weekly inflow on record.

The $19 billion fund provides three-times daily exposure to the semiconductor sector. The inflow total could set a record if it holds.

The $72 billion VanEck Semiconductor ETF drew more than $430 million over three trading sessions, putting it on pace for its largest weekly inflow since early September.

The Philadelphia Semiconductor Index dropped 12% over six trading sessions, while chip stocks lost about $1 trillion in market value. Concerns about artificial intelligence spending and intensifying global competition weighed on the sector; worries about valuations and rising interest rates added to the volatility.

Todd Sohn, chief ETF strategist at Baird Strategas, said investor demand for leveraged buying persisted as the chip-stock pullback accelerated.