Chip ETFs Draw $9.8B as Semiconductor Stocks Rally

Investors put fresh cash into semiconductor-focused ETFs after chip stocks rallied following quarterly reports from Microsoft and Amazon that highlighted heavy spending on cloud computing and artificial intelligence infrastructure. The iShares Semiconductor ETF (SOXX) received $4.08 billion, VanEck’s SMH took in $3.3 billion and the leveraged Direxion SOXL drew $2.4 billion.

SOXX rose 5.4% on Friday after an 8.5% gain Thursday, its best two-day performance since April 9, 2025. Micron Technology and Advanced Micro Devices were among the largest contributors to SOXX’s advance. Large-cap tech gains over two trading days helped lift semiconductor stocks broadly.

SOXX manages about $41.6 billion and charges a 0.34% expense ratio. The fund tracks a modified market-cap-weighted index of 30 U.S.-listed chip companies that limits any single stock’s weight. AMD is the largest holding at roughly 8.6%, followed by Nvidia at 8.4%, Micron at 8.2% and Broadcom at 7.9%; the top 10 holdings account for about 61% of the fund.

SMH added roughly $3.3 billion and holds about $63.3 billion with a 0.35% fee. It follows a narrower market-cap-weighted index of 25 firms, which concentrates exposure in the largest companies. Nvidia represents about 20.8% of SMH, Taiwan Semiconductor Manufacturing Co. about 9.6%, Broadcom 6.6% and AMD 5.7%; the top 10 holdings make up roughly 72% of the fund.

SOXL, a leveraged ETF designed to deliver 300% of the daily return of a semiconductor index, pulled in $2.4 billion. The $15.4 billion fund charges 0.75% and uses swaps and futures to achieve its exposure. AMD and Nvidia are its largest direct equity exposures at about 4.9% and 4.8% each. SOXL has fallen about 15.5% year-to-date in 2026, compared with declines near 4% for SOXX and SMH.

Flows reflected investor demand for exposure to chips used in data centers and AI systems. Treasury yields rose to multiyear highs during the same period while the sector advanced. Traders and portfolio managers moved into broad semiconductor ETFs and a leveraged option for short-term positions.

The three funds differ in construction and risk. SOXX’s modified weighting aims to limit single-stock concentration. SMH’s market-cap approach concentrates holdings in the largest firms. SOXL’s use of leverage and derivatives produces larger daily swings and can cause returns to diverge from a simple multiple of the index over longer periods, making it intended for short-term trading rather than long-term holding.