U.S. Leveraged Semiconductor ETFs Shrink by $63 Billion from Peak
Taylor Wilson
US leveraged semiconductor ETFs have lost $63 billion in assets since their June peak, dropping to roughly $100 billion — the lowest since late April 2025. The unwind follows a near-tripling in fund size over the prior three months, and the deleveraging may not be over.
What just happened to $63 billion?
Leveraged semiconductor ETFs — funds that use borrowed money to amplify chip-stock moves — saw AUM fall from their June peak to about $100 billion, back to late-April 2025 levels.
This means → investors are unwinding positions at scale. Nearly all of the $63 billion drop came from concentrated selling after the peak.
This is the largest drawdown since April 2025. The speed points to panic deleveraging, not a gradual fade.
How fast did they inflate?
From the last week of March to the June peak, these funds' AUM nearly tripled.
In plain terms = in under three months, the market poured roughly twice the original asset base into leveraged chip bets — a pace far above normal.
This reflects how concentrated bullish sentiment on semiconductors had become, with capital doubling down through leveraged instruments.
Is the selloff over?
Even after this sharp unwind, leveraged semiconductor ETF assets remain about 400% above their January 2023 level.
This means → the leveraged position built up over the past two years is still enormous. The current flush has not come close to squeezing it out.
Whether deleveraging stops here remains an open question — if chip stocks stay under pressure, another wave of forced selling could be triggered at any time.
Content is for reference only, not financial advice.