Semiconductor ETFs Lead Massive Tech Exodus from Sector Funds

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Weekly Channel Summary

The Sector & Industry channel encompasses 282 ETFs from 59 issuers, with total assets under management of $1.085 trillion. This week, the channel experienced significant net outflows totaling $6.41 billion, a sharp reversal from recent trends. This withdrawal contrasts with the substantial inflows seen year-to-date, which stand at $54.64 billion. Over the past year, investors have added a robust $75.14 billion to the channel.

This Week’s Performance Leaders and Laggards

Energy sector funds led performance this week, gaining 3.25% and extending their year-to-date lead to an impressive 35.06%. Industrial and Utilities funds also posted solid gains, rising 2.39% and 2.33% respectively. On the other end of the spectrum, Consumer Discretionary was the worst-performing category, falling 4.97% for the week. Communication Services funds also struggled, declining by 4.05% and remaining negative on a year-to-date basis.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Energy 3.25% 11.10% 4.47% 22.91% 35.06% 40.87%
Industrial 2.39% 1.14% 6.18% 6.01% 14.86% 20.53%
Utilities 2.33% 1.47% 0.71% 9.76% 9.58% 12.56%
Materials 1.59% -0.31% -1.88% 2.10% 13.32% 15.67%
Real Estate 0.85% 3.95% 6.71% 13.90% 16.53% 15.19%
Health Care 0.20% 4.87% 12.71% 6.01% 8.58% 29.48%
Information Technology 0.09% -4.83% 9.66% 26.29% 31.44% 51.15%
Financials -0.07% 4.53% 9.88% 7.95% 6.08% 11.81%
Consumer Staples -1.23% -0.35% 1.27% 2.62% 9.34% 6.14%
Communication Services -4.05% -0.39% -7.72% -8.22% -8.53% 0.48%
Consumer Discretionary -4.97% -4.55% -6.81% -9.80% -6.94% -0.47%

Top & Bottom 5 ETFs by Weekly Performance

The SonicShares Global Shipping ETF (BOAT) was the top individual performer, climbing 5.72% for the week. Several energy and industrial funds also posted strong results, including the Gabelli Commercial Aerospace and Defense ETF (GCAD), which gained 4.71%. Conversely, funds employing defined volatility strategies within struggling sectors saw the largest declines. The WEBs Consumer Discretionary XLY Defined Volatility ETF (DVXY) fell 7.67%, followed closely by the WEBs Communication Services XLC Defined Volatility ETF (DVXC) with a 7.40% loss.

Ticker Fund Name WTD Performance
Top Performers
BOAT SonicShares Global Shipping ETF 5.72%
DVXE WEBs Energy XLE Defined Volatility ETF 4.78%
PBOG Portfolio Building Block Integrated Oil and Gas and Exploration and Production Index ETF 4.77%
GCAD Gabelli Commercial Aerospace and Defense ETF 4.71%
PXJ Invesco Oil & Gas Services ETF 4.49%
Bottom Performers
DVXY WEBs Consumer Discretionary XLY Defined Volatility ETF -7.67%
DVXC WEBs Communication Services XLC Defined Volatility ETF -7.40%
GXPD Global X PureCap MSCI Consumer Discretionary ETF -6.28%
TRUD VanEck Consumer Discretionary TruSector ETF -6.27%
GXPC Global X PureCap MSCI Communication Services ETF -6.27%

Analyzing the Weekly Flows

Sector & Industry ETFs saw net outflows of $6.41 billion, driven primarily by a massive retreat from technology. The Information Technology category was the main source of the redemptions, shedding a staggering $5.56 billion. Financials also experienced significant withdrawals, with investors pulling $1.05 billion from the category. Bucking the trend, Energy funds attracted the most new capital with $425 million in net inflows, followed by Consumer Staples with $345 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Energy 33 $67.83B $425M -$1,654M -$3,233M $7,942M $5,675M
Consumer Staples 14 $26.41B $345M $798M -$470M -$1,090M -$1,853M
Real Estate 56 $97.68B $232M $1,564M $4,675M $5,037M $8,801M
Materials 11 $14.25B $174M $51M $908M $3,210M $3,201M
Health Care 33 $104.79B $128M $3,675M $2,248M $3,377M $7,832M
Utilities 12 $39.58B -$166M $375M -$750M -$688M $2,126M
Communication Services 8 $30.57B -$272M -$289M -$1,365M -$3,398M -$1,931M
Consumer Discretionary 15 $32.26B -$310M $356M -$216M -$2,230M -$2,175M
Industrial 31 $88.36B -$351M $679M $1,426M $12,614M $18,502M
Financials 35 $103.87B -$1,049M $4,052M $2,155M -$402M -$1,661M
Information Technology 34 $479.58B -$5,564M $7,176M $16,335M $30,264M $36,624M

Top & Bottom 5 ETFs by 5-Day Flow

Despite broad outflows, defensive sectors saw some interest, with the State Street Health Care Select Sector SPDR ETF (XLV) leading all funds with $361 million in net inflows. The State Street Consumer Staples Select Sector SPDR ETF (XLP) also gathered significant assets, pulling in $314 million. Redemptions were heavily concentrated in technology funds, particularly those focused on semiconductors. The iShares Semiconductor ETF (SOXX) experienced the largest outflow at $2.78 billion, while the iShares Expanded Tech-Software Sector ETF (IGV) and VanEck Semiconductor ETF (SMH) shed $1.23 billion and $1.11 billion, respectively.

Ticker Fund Name 5-Day Flow
Inflows
XLV State Street Health Care Select Sector SPDR ETF $361M
XLP State Street Consumer Staples Select Sector SPDR ETF $314M
XLK State Street Technology Select Sector SPDR ETF $276M
IYH iShares U.S. Healthcare ETF $258M
XOP State Street SPDR S&P Oil & Gas Exploration & Production ETF $156M
Outflows
SOXX iShares Semiconductor ETF -$2,780M
IGV iShares Expanded Tech-Software Sector ETF -$1,228M
SMH VanEck Semiconductor ETF -$1,105M
KRE State Street SPDR S&P Regional Banking ETF -$664M
IXN iShares Global Tech ETF -$514M

Issuer League Table Update

SPDR and Vanguard continue to dominate the Sector & Industry channel, commanding 38.96% and 24.29% of the market share, respectively. Despite the channel’s overall negative flows, Vanguard managed to attract $187 million in net new assets for the week. Conversely, iShares bore the brunt of the week’s redemptions, seeing a substantial outflow of $4.06 billion. SPDR and VanEck also faced significant withdrawals, with outflows exceeding $1 billion for each issuer.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $422.83B 38.96%
Vanguard 12 $263.59B 24.29%
iShares 49 $191.36B 17.63%
VanEck 20 $74.00B 6.82%
Fidelity 12 $39.26B 3.62%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $187M
Fidelity $28M
Davis $20M
Outflows
iShares -$4,055M
SPDR -$1,051M
VanEck -$1,020M

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.