Semiconductor ETFs Bleed Billions Despite Tech Sector’s Strong Weekly Gains

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Weekly Channel Summary

The Sector & Industry channel saw net outflows of $2.4 billion this week, bringing its year-to-date total to a positive $61.9 billion. Total assets under management for the channel’s 281 ETFs from 59 issuers stand at $1.12 trillion. Over the past year, investors have allocated a net $80.1 billion into this segment.

This Week’s Performance Leaders and Laggards

Information Technology was the week’s standout performer, gaining 7.39% and extending its year-to-date lead to 38.96%. The Materials sector also posted strong results with a 5.47% weekly return. At the other end of the spectrum, Energy was the weakest category, declining 3.35% for the week, which contrasts with its strong 30.44% gain year-to-date. Utilities also struggled, falling 1.49%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Information Technology 7.39% 4.13% 10.27% 36.38% 38.96% 58.28%
Materials 5.47% 3.21% 2.96% 3.38% 17.53% 23.88%
Industrial 4.23% 2.18% 8.14% 6.36% 18.39% 25.73%
Consumer Discretionary 3.12% 2.18% 0.87% 2.29% 1.50% 8.40%
Health Care 3.02% 0.24% 15.38% 9.44% 11.58% 38.51%
Communication Services 2.86% -0.15% -5.03% -2.82% -4.33% 6.01%
Financials 1.22% 2.65% 11.99% 7.25% 8.37% 17.70%
Consumer Staples 0.18% 0.35% 1.99% -2.00% 10.82% 6.57%
Real Estate -0.48% 0.10% 2.96% 8.70% 13.83% 14.91%
Utilities -1.49% -4.48% -2.72% 1.86% 3.44% 3.53%
Energy -3.35% 5.23% 2.57% 9.88% 30.44% 41.10%

Top & Bottom 5 ETFs by Weekly Performance

Semiconductor funds dominated the top performers list, led by the State Street SPDR S&P Semiconductor ETF (XSD) which surged 11.73%. This performance contrasts sharply with the group’s flow activity. Conversely, energy production funds populated the bottom of the rankings, with the State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) falling 6.20% as the category faced headwinds.

Ticker Fund Name WTD Performance
Top Performers
XSD State Street SPDR S&P Semiconductor ETF 11.73%
WDAF WisdomTree Asia Defense Fund 11.66%
PTF Invesco Dorsey Wright Technology Momentum ETF 10.22%
MISL First Trust Indxx Aerospace & Defense ETF 9.74%
FTXL First Trust Nasdaq Semiconductor ETF 9.21%
Bottom Performers
XOP State Street SPDR S&P Oil & Gas Exploration & Production ETF -6.20%
PXE Invesco Energy Exploration & Production ETF -5.67%
IEO iShares U.S. Oil & Gas Exploration & Production ETF -5.39%
DVXE WEBs Energy XLE Defined Volatility ETF -5.05%
PBOG Portfolio Building Block Integrated Oil and Gas and Exploration and Production Index ETF -4.48%

Analyzing the Weekly Flows

Despite strong performance, the Information Technology sector experienced a massive $5.77 billion in net outflows, driving the channel’s overall negative flow for the week. This suggests significant profit-taking or a rotation out of the year’s leading sector. Investors reallocated capital to other areas, with Health Care attracting $1.24 billion, Industrials pulling in $1.19 billion, and Consumer Discretionary gathering $1.05 billion in new assets.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Health Care 33 $107.92B $1,240M $2,771M $5,168M $4,859M $10,012M
Industrial 31 $93.47B $1,188M $556M $2,076M $13,832M $19,006M
Consumer Discretionary 15 $34.45B $1,047M $765M $1,351M -$1,190M -$576M
Financials 35 $108.93B $590M $3,255M $3,686M $1,502M $647M
Real Estate 55 $98.31B $94M $743M $5,023M $5,474M $9,249M
Consumer Staples 14 $27.43B $57M $247M -$133M -$1,136M -$1,914M
Communication Services 7 $30.90B $33M -$734M -$1,441M -$3,735M -$4,882M
Utilities 12 $38.23B -$29M $180M $327M -$342M $1,928M
Materials 11 $14.07B -$285M -$360M $229M $2,695M $2,659M
Energy 33 $65.90B -$553M -$157M -$5,218M $7,152M $5,627M
Information Technology 34 $498.20B -$5,770M $5,695M $18,574M $32,806M $38,389M

Top & Bottom 5 ETFs by 5-Day Flow

Flows at the fund level were dominated by a rotation out of semiconductor ETFs. The iShares Semiconductor ETF (SOXX) shed a substantial $3.70 billion, while the VanEck Semiconductor ETF (SMH) saw outflows of $1.80 billion. On the receiving end, the State Street Industrial Select Sector SPDR ETF (XLI) was the week’s top asset gatherer, taking in $941 million.

Ticker Fund Name 5-Day Flow
Inflows
XLI State Street Industrial Select Sector SPDR ETF $941M
XLV State Street Health Care Select Sector SPDR ETF $707M
XLY State Street Consumer Discretionary Select Sector SPDR ETF $680M
IXN iShares Global Tech ETF $518M
IYW iShares U.S. Technology ETF $352M
Outflows
SOXX iShares Semiconductor ETF -$3,695M
SMH VanEck Semiconductor ETF -$1,802M
VGT Vanguard Information Technology ETF -$561M
XLK State Street Technology Select Sector SPDR ETF -$500M
XLE State Street Energy Select Sector SPDR ETF -$237M

Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: GXPC (-$89M).

Issuer League Table Update

SPDR and Vanguard continue to lead the sector space, commanding 39.0% and 24.4% of the market share, respectively. SPDR was the clear winner in weekly flows, attracting nearly $3.0 billion in net new assets despite outflows from its flagship tech fund. Conversely, iShares experienced the largest weekly outflows, losing $3.0 billion, driven almost entirely by redemptions from its large semiconductor ETF.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $435.85B 38.99%
Vanguard 12 $272.20B 24.35%
iShares 49 $199.62B 17.86%
VanEck 20 $74.94B 6.70%
Fidelity 12 $39.11B 3.50%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
SPDR $2,958M
Invesco $159M
US Global $68M
Outflows
iShares -$3,041M
VanEck -$1,843M
Vanguard -$723M

For a deeper dive into these trends, access our FREE, in-depth Sector & Industry ETF reports in the right side panel of this page.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.