Traders Pour Nearly $2.5 Billion into Leveraged Semiconductor ETF SOXL Despite Weekly Drop

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Weekly Channel Summary

The Leverage & Inverse channel encompasses 774 ETFs from 25 issuers, with total assets under management of $160.20 billion. The channel attracted $2.27 billion in net flows over the past week, bringing year-to-date inflows to $7.94 billion. Over the last twelve months, the channel has gathered $4.15 billion in net new assets.

This Week’s Performance Leaders and Laggards

All categories within the Leverage & Inverse channel posted negative returns for the week amid broad market declines. Commodity-focused products were the most resilient, falling just -0.92%, while Single Stock strategies saw the steepest losses at -5.60%. Despite the weekly drop, Single Stock funds remain the top-performing category year-to-date with a gain of 63.50%, contrasting sharply with Crypto funds, which are down -52.00% over the same period.

Top & Bottom 5 ETFs by Weekly Performance

Gains were concentrated in specific bullish consumer and internet plays this week, with the Direxion Daily Consumer Discretionary Bull 3X ETF (WANT) leading all funds with an 18.36% return. On the other end of the spectrum, the 21Shares 2x Long HYPE ETF (TXXH) was the worst performer, declining by -19.96%. Notably, the Direxion Daily Semiconductor Bull 3X ETF (SOXL) also experienced a significant drop of -16.15%, ranking among the bottom performers for the week.

Ticker Fund Name WTD Performance
Top Performers
WANT Direxion Daily Consumer Discretionary Bull 3X ETF 18.36%
WEBL Direxion Daily Dow Jones Internet Bull 3X ETF 18.18%
CWEB Direxion Daily CSI China Internet Index Bull 2X ETF 17.39%
SKYU ProShares Ultra Nasdaq Cloud Computing ETF 17.25%
YINN Direxion Daily FTSE China Bull 3X ETF 17.22%
Bottom Performers
TXXH 21Shares 2x Long HYPE ETF -19.96%
WEBS Direxion Daily Dow Jones Internet Bear 3X ETF -16.62%
SOXL Direxion Daily Semiconductor Bull 3X ETF -16.15%
KORU Direxion Daily MSCI South Korea Bull 3X ETF -16.02%
YANG Direxion Daily FTSE China Bear 3X ETF -15.32%

Analyzing the Weekly Flows

The Leverage & Inverse channel recorded net inflows of $2.27 billion for the week, driven almost entirely by a single category. Leveraged and Inverse Equity products attracted a substantial $2.49 billion, reversing a longer-term trend of outflows. Meanwhile, Single Stock funds saw the largest redemptions, shedding -$159 million. This weekly activity contrasts with the year-to-date picture, where Single Stock funds lead with $12.79 billion in new assets while Equity funds have seen net outflows of -$10.50 billion.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Leverage | Inverse – Equity 234 $119.94B $2,486M $8,863M $2,640M -$10,501M -$23,290M
Leverage | Inverse – Crypto 28 $2.98B $7M -$92M $242M $1,357M $4,777M
Leverage | Inverse – Commodity 22 $3.85B -$29M $96M $3,234M $5,571M $6,366M
Leverage | Inverse – Fixed Income 15 $3.03B -$40M $222M -$325M -$1,276M -$2,682M
Leverage | Inverse – Single Stock 475 $30.40B -$159M -$1,513M $9,156M $12,788M $18,974M

Top & Bottom 5 ETFs by 5-Day Flow

The Direxion Daily Semiconductor Bull 3X ETF (SOXL) dominated inflows, attracting a staggering $2.50 billion from investors despite its poor weekly performance. This suggests a significant ‘buy the dip’ sentiment in the semiconductor space. On the outflow side, its bearish counterpart, the Direxion Daily Semiconductor Bear 3X ETF (SOXS), saw the largest redemptions of -$601 million. The Direxion Daily MU Bull 2X ETF (MUU) followed with the second-largest outflow of -$259 million.

Ticker Fund Name 5-Day Flow
Inflows
SOXL Direxion Daily Semiconductor Bull 3X ETF $2,495M
TQQQ ProShares UltraPro QQQ $623M
TSLL Direxion Daily TSLA Bull 2X ETF $265M
KORU Direxion Daily MSCI South Korea Bull 3X ETF $135M
QLD ProShares Ultra QQQ $123M
Outflows
SOXS Direxion Daily Semiconductor Bear 3X ETF -$601M
MUU Direxion Daily MU Bull 2X ETF -$259M
MSFU Direxion Daily MSFT Bull 2X ETF -$228M
UPRO ProShares UltraPro S&P500 -$74M
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF -$70M

Issuer League Table Update

ProShares and Direxion continue to dominate the Leverage & Inverse landscape, commanding 44.53% and 37.60% of the market share, respectively. Direxion led all issuers in asset gathering this week, pulling in a substantial $1.62 billion in net new money, largely due to demand for its semiconductor products. In contrast, GraniteShares experienced the largest net outflows among issuers, with redemptions totaling -$57 million for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
ProShares 113 $71.34B 44.53%
Direxion 124 $60.24B 37.60%
GraniteShares 44 $7.75B 4.84%
REX Microsectors 21 $6.51B 4.06%
Tradr 76 $4.35B 2.72%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Direxion $1,616M
ProShares $500M
Leverage Shares $80M
Outflows
GraniteShares -$57M
Volatility Shares -$19M
Tradr -$17M

For a deeper dive into these trends, access our FREE, in-depth Leverage & Inverse 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.