Leveraged Chip Fund Sees Record $7 Billion Weekly Inflow Amid Selloff

3-line summary

• The Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL), a 3x leveraged product tracking the semiconductor index's daily return, took in about $7 billion over the past week, its largest-ever weekly inflow, even as the fund's value fell by roughly a third over the same period.
• The inflow translated into about $21 billion in notional semiconductor-sector exposure through the 3x leveraged structure, which the fund had to hedge against during the selloff; the Philadelphia Semiconductor Index (SOX) fell for eight straight trading sessions through last week, its longest losing streak since October 2008, dropping about 16% over that span amid concerns over rate-hike risk and uncertainty around AI-infrastructure spending.
• SOXL rebounded more than 9% in premarket trading Monday, while the US 10-year Treasury yield held roughly steady near 5%.

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