Semiconductor ETFs SOXX and SMH Power Massive $7.6B Tech Sector Inflow

Share

Weekly Channel Summary

The Sector & Industry channel encompasses 278 ETFs from 59 issuers, with total assets under management reaching $1.09 trillion. Investors poured a substantial $9.7 billion into the channel over the past week, bringing year-to-date net flows to $54.6 billion. Over the last twelve months, the channel has attracted $75.2 billion in new assets.

This Week’s Performance Leaders and Laggards

Energy funds led performance for the week with a 3.43% gain, rebounding from recent weakness over the past one and three months. Information Technology continued its strong run, rising 2.75% and maintaining its position as the top-performing category year-to-date with a 40.28% return. On the downside, Industrial and Materials funds were the weakest performers, falling 2.25% and 2.22% respectively.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Energy 3.43% -4.83% -3.15% 20.15% 25.09% 28.90%
Information Technology 2.75% 5.62% 32.70% 35.18% 40.28% 62.89%
Communication Services 1.91% 1.43% -0.83% -3.92% -3.57% 7.94%
Financials 0.36% 7.13% 10.28% 3.00% 5.19% 11.49%
Consumer Discretionary 0.03% 3.51% 4.36% -4.91% -0.77% 6.76%
Real Estate -0.65% 0.73% 5.43% 11.22% 12.55% 13.44%
Utilities -0.69% 3.86% -2.57% 7.98% 7.66% 13.11%
Consumer Staples -1.04% -0.75% 2.31% 7.37% 9.42% 6.49%
Health Care -1.63% 9.07% 12.03% 6.94% 9.00% 29.65%
Materials -2.22% 2.23% -2.48% 5.66% 12.75% 14.28%
Industrial -2.25% 5.97% 4.59% 7.34% 14.68% 23.14%

Top & Bottom 5 ETFs by Weekly Performance

The week’s top-performing funds were concentrated in the oil industry, with the VanEck Oil Refiners ETF (CRAK) leading the pack with a 6.05% advance. Several other oil services and equipment ETFs also posted gains of over 5.7%. In contrast, Aerospace & Defense funds experienced significant declines, with the State Street SPDR S&P Aerospace & Defense ETF (XAR) dropping 5.60% to become the week’s worst performer.

Ticker Fund Name WTD Performance
Top Performers
CRAK VanEck Oil Refiners ETF 6.05%
IEZ iShares U.S. Oil Equipment & Services ETF 5.96%
PXJ Invesco Oil & Gas Services ETF 5.82%
OIH VanEck Oil Services ETF 5.74%
SMHX VanEck Fabless Semiconductor ETF 5.12%
Bottom Performers
XAR State Street SPDR S&P Aerospace & Defense ETF -5.60%
WDEF WisdomTree Europe Defense Fund -5.36%
MISL First Trust Indxx Aerospace & Defense ETF -4.95%
MEDX Horizon Kinetics Medical ETF -4.94%
WDGF WisdomTree Global Defense Fund -4.34%

Analyzing the Weekly Flows

The channel saw robust net inflows of $9.7 billion, with the Information Technology sector capturing the vast majority of new capital. Tech funds attracted an overwhelming $7.6 billion, more than ten times the next closest category. Financials also saw positive interest with $645 million in net inflows, while Consumer Discretionary experienced the largest redemptions at a modest $173 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Information Technology 34 $494.24B $7,620M $8,392M $23,255M $32,395M $38,045M
Financials 35 $100.82B $645M $2,807M $35M -$1,650M -$1,756M
Health Care 33 $106.40B $423M $2,609M $1,194M $2,004M $5,612M
Real Estate 55 $95.68B $410M $2,751M $4,004M $4,861M $8,412M
Industrial 31 $89.83B $369M $2,721M $2,452M $13,337M $19,927M
Consumer Staples 14 $26.84B $317M $20M -$492M -$1,289M -$2,158M
Utilities 11 $39.21B $156M $510M -$1,482M -$465M $2,860M
Materials 10 $13.99B $125M $481M $1,102M $3,054M $2,881M
Energy 32 $63.13B -$17M -$2,912M -$2,941M $7,482M $5,023M
Communication Services 8 $31.29B -$143M -$262M -$509M -$2,949M -$1,549M
Consumer Discretionary 15 $32.88B -$173M $57M -$175M -$2,194M -$2,130M

Top & Bottom 5 ETFs by 5-Day Flow

Investor demand was heavily concentrated in semiconductor ETFs, which dominated the fund flow leaderboard. The iShares Semiconductor ETF (SOXX) single-handedly brought in an exceptional $5.3 billion, while the VanEck Semiconductor ETF (SMH) added another $2.5 billion. Conversely, the State Street SPDR S&P Regional Banking ETF (KRE) and the State Street Communication Services Select Sector SPDR ETF (XLC) saw the largest outflows, shedding $329 million and $280 million respectively.

Ticker Fund Name 5-Day Flow
Inflows
SOXX iShares Semiconductor ETF $5,268M
SMH VanEck Semiconductor ETF $2,495M
XLF State Street Financial Select Sector SPDR ETF $729M
XLP State Street Consumer Staples Select Sector SPDR ETF $320M
XLB State Street Materials Select Sector SPDR ETF $263M
Outflows
KRE State Street SPDR S&P Regional Banking ETF -$329M
XLC State Street Communication Services Select Sector SPDR ETF -$280M
VGT Vanguard Information Technology ETF -$209M
PBEU Portfolio Building Block European Banks Index ETF -$154M
XLE State Street Energy Select Sector SPDR ETF -$130M

Issuer League Table Update

SPDR and Vanguard continue to lead the channel in assets, with market shares of 38.46% and 24.10%, respectively. However, iShares was the clear winner in weekly asset gathering, pulling in $6.3 billion in net new money, largely driven by its flagship semiconductor fund. VanEck also had a strong week, attracting over $2.5 billion, while Portfolio Building Block recorded the largest net outflows at $160 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $420.83B 38.46%
Vanguard 12 $263.74B 24.10%
iShares 49 $197.74B 18.07%
VanEck 16 $77.84B 7.11%
Fidelity 12 $39.78B 3.64%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $6,328M
VanEck $2,523M
SPDR $708M
Outflows
Portfolio Building Block -$160M
Vanguard -$69M
First Trust -$66M

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.