Semiconductor Shake-Up: SOXX Sheds $1.4B Amid Broad Sector ETF Outflows

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Weekly Channel Summary

The Sector & Industry channel, comprising 281 ETFs from 59 issuers, holds approximately $1.09 trillion in assets under management. This week, the channel experienced significant net outflows totaling $3.03 billion. Despite the weekly withdrawal, year-to-date inflows remain robust at $58.94 billion, contributing to a one-year total of $77.87 billion.

This Week’s Performance Leaders and Laggards

Energy was the standout performer this week, surging 7.56% and extending its year-to-date lead to an impressive 40.32%. Most other sectors saw modest gains, with Utilities and Communication Services rising 1.59% and 1.36%, respectively. On the other end of the spectrum, Consumer Discretionary was the weakest category, declining by 1.32% for the week.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Energy 7.56% 8.54% 6.51% 15.74% 40.32% 49.72%
Utilities 1.59% -3.02% -0.65% -3.47% 5.07% 5.91%
Communication Services 1.36% 0.84% -3.50% -0.34% -3.12% 3.71%
Financials 1.13% 3.55% 14.19% 13.69% 9.69% 15.17%
Information Technology 1.05% 2.59% 5.57% 38.37% 40.70% 56.44%
Industrial 0.99% 5.68% 8.69% 7.10% 19.50% 26.49%
Consumer Staples 0.97% 3.08% 1.94% -2.59% 11.90% 7.96%
Health Care 0.73% 5.23% 15.06% 10.86% 12.48% 34.18%
Real Estate 0.12% 0.96% 3.96% 5.67% 13.98% 15.81%
Materials -0.50% 4.20% 1.74% -0.33% 17.08% 20.43%
Consumer Discretionary -1.32% 2.02% 0.68% 2.47% 0.06% 4.03%

Top & Bottom 5 ETFs by Weekly Performance

Reflecting the category’s dominance, Energy-focused funds captured all of the top performance spots for the week. The WEBs Energy XLE Defined Volatility ETF (DVXE) led the pack with a 10.30% gain, closely followed by funds like the Invesco Dorsey Wright Energy Momentum ETF (PXI). Conversely, funds tied to travel and retail struggled, with the U.S. Global Jets ETF (JETS) falling 3.01%. The State Street SPDR S&P Retail ETF (XRT) also saw a notable decline of 2.06%.

Ticker Fund Name WTD Performance
Top Performers
DVXE WEBs Energy XLE Defined Volatility ETF 10.30%
PXI Invesco Dorsey Wright Energy Momentum ETF 10.02%
IEO iShares U.S. Oil & Gas Exploration & Production ETF 9.65%
XES State Street SPDR S&P Oil & Gas Equipment & Services ETF 9.57%
PXJ Invesco Oil & Gas Services ETF 9.35%
Bottom Performers
JETS U.S. Global Jets ETF -3.01%
PEZ Invesco Dorsey Wright Consumer Cyclicals Momentum ETF -2.24%
XRT State Street SPDR S&P Retail ETF -2.06%
TRUD VanEck Consumer Discretionary TruSector ETF -2.01%
GXPD Global X PureCap MSCI Consumer Discretionary ETF -1.87%

Analyzing the Weekly Flows

Investors pulled a net $3.03 billion from Sector & Industry ETFs over the past week. The Information Technology category bore the brunt of these withdrawals, experiencing outflows of $1.59 billion. Financials also saw significant redemptions, with investors withdrawing $921 million. Bucking the trend, Health Care funds attracted the most new capital, bringing in $315 million, followed by Materials with $185 million in net inflows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Health Care 33 $108.90B $315M $2,732M $5,126M $5,174M $10,363M
Materials 11 $13.79B $185M -$184M $428M $2,880M $2,805M
Consumer Staples 14 $26.04B $95M $457M -$224M -$1,040M -$2,081M
Real Estate 55 $96.12B $93M $864M $4,399M $5,567M $9,073M
Utilities 12 $35.65B -$153M $97M $375M -$494M $1,521M
Communication Services 8 $28.81B -$164M -$651M -$1,498M -$3,845M -$3,105M
Energy 33 $66.81B -$168M -$672M -$5,339M $6,984M $5,736M
Consumer Discretionary 15 $32.53B -$317M $613M $1,100M -$1,507M -$910M
Industrial 31 $91.31B -$406M $186M $2,624M $13,426M $18,428M
Financials 35 $105.96B -$921M $2,463M $4,227M $581M -$599M
Information Technology 34 $485.78B -$1,593M -$1,605M $15,538M $31,213M $36,641M

Top & Bottom 5 ETFs by 5-Day Flow

Despite broad outflows from the technology sector, the Vanguard Information Technology ETF (VGT) was the week’s top asset gatherer, securing $410 million in new assets. On the other hand, redemptions were heavily concentrated in just a few large funds. The iShares Semiconductor ETF (SOXX) experienced the largest withdrawal, shedding $1.42 billion, while the State Street Financial Select Sector SPDR ETF (XLF) saw outflows of $1.00 billion.

Ticker Fund Name 5-Day Flow
Inflows
VGT Vanguard Information Technology ETF $410M
XLB State Street Materials Select Sector SPDR ETF $189M
SOXQ Invesco PHLX Semiconductor ETF $189M
XBI State Street SPDR S&P Biotech ETF $150M
KRE State Street SPDR S&P Regional Banking ETF $135M
Outflows
SOXX iShares Semiconductor ETF -$1,416M
XLF State Street Financial Select Sector SPDR ETF -$1,001M
XLK State Street Technology Select Sector SPDR ETF -$571M
XLI State Street Industrial Select Sector SPDR ETF -$352M
SMH VanEck Semiconductor ETF -$348M

Issuer League Table Update

SPDR and Vanguard continue to dominate the Sector & Industry channel, commanding 40.21% and 25.38% of the market share, respectively. This week, Invesco led all issuers in asset gathering, attracting $375 million in net inflows. In contrast, SPDR experienced the largest outflows, with redemptions totaling $2.13 billion, followed by iShares which saw $1.25 billion in withdrawals.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $439.01B 40.21%
Vanguard 12 $277.12B 25.38%
iShares 48 $201.00B 18.41%
VanEck 20 $76.77B 7.03%
Invesco 44 $36.99B 3.39%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Invesco $375M
Vanguard $353M
Cohen & Steers $22M
Outflows
SPDR -$2,131M
iShares -$1,246M
VanEck -$378M

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.