# Hedge Funds Cut Tech at Record Pace as Leveraged ETFs Draw $9.5 Billion

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/35602
Published: 2026-10-20T11:38:53.000Z
Updated: 2026-10-20T11:38:53.000Z
Section: Investing

> Semiconductor and equipment stocks accounted for 57% of net U.S. technology selling, while about $7 billion flowed into SOXL.

Hedge funds made their steepest proportional cut to technology positions since Goldman Sachs began tracking the measure in 2016, even as leveraged equity ETFs drew a record $9.5 billion last week.

Across the five trading sessions through Oct. 15, semiconductor and semiconductor-equipment stocks accounted for 57% of net selling in U.S. technology shares. The Nasdaq 100 fell 5.5% and the Philadelphia Semiconductor Index dropped about 11.4% in the week ended Oct. 16.

From Oct. 12 to 16, about $7 billion of the inflows into leveraged equity ETFs went to SOXL, a fund tied to semiconductor stocks. That represented most of the $9.5 billion weekly total. The inflows came during the same week that chip stocks posted a steeper decline than the broader Nasdaq 100.

Technology still held a 23.5% net allocation in Goldman Sachs’ global prime brokerage book after the selling. That level stood at the 90th percentile of its five-year history, leaving the sector heavily represented in those portfolios despite the rapid reduction.