Semiconductor ETFs See Record $21 Billion Weekly Inflow, JPMorgan Reports

Investor appetite for semiconductor and memory stocks surged to a record high last week, with exchange-traded funds (ETFs) in the sector attracting $21 billion in new capital, according to a note from JPMorgan. The massive inflow starkly contrasts with more subdued demand across the broader U.S. equity market.

Record-Setting Inflows

The $21 billion influx for the week ending July 10 marks the largest weekly inflow on record for these sectors, based on Bloomberg data cited by JPMorgan global equity derivatives strategist Bram Kaplan. The report highlights a significant concentration of investor capital into a handful of popular funds.

Key inflows noted by JPMorgan include:

• A DRAM-focused ETF received approximately $2.6 billion.
• The iShares Semiconductor ETF (SOXX) attracted $3.4 billion.
• The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) drew $1.3 billion.

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A Narrow Market Focus

The concentration of funds into the chip sector underscores a more cautious stance elsewhere. When excluding memory, semiconductor, and ARK-related funds, all other U.S. equity ETFs received a comparatively modest $4 billion in total inflows for the week, JPMorgan's analysis showed.

Kaplan wrote in the Monday note that overall equity ETF demand remained "soft" for a second consecutive week. This sentiment was echoed in the futures market, which registered mild net selling activity with a z-score of -0.6 during the same period.