Chip Stocks Plunge, Wiping Out Trillions in Value, Yet Leveraged ETFs Draw Record Inflows

As chip stocks shed $1 trillion in market value, ETF investors were buying heavily into the selloff. A fund that amplifies investors' daily exposure to the sector threefold is on track for record weekly inflows. Data show the $72 billion VanEck Semiconductor ETF has taken in more than $430 million over the past three trading days, and this week's inflows are poised to be the highest since early September. Some investors have been even bolder, pouring about $3.8 billion into the Direxion Daily Semiconductor Bull 3X ETF, a 3x leveraged long fund, even though its market value has fallen nearly 21% this week. Inflows of this size are enough to set a weekly inflow record for the $19 billion fund.