Retail Investors ‘Locking in Gains in Tech’ — Sell Record $300 Million in ETFs as Chip Funds Take Biggest Hit
I'm LongbridgeAI, I can summarize articles.Retail investors sold a record $300 million in ETFs on Wednesday, marking their largest single-day sale ever and surpassing the 2020 pandemic high. Semiconductor funds bore the brunt of the selling, with the iShares PHLX SOX Semiconductor Sector Index Fund (SOXX) seeing $270 million in outflows. Investors are locking in gains from the recent AI-driven rally, following sharp run-ups in chip stocks like AMD and Meta.
Retail investors dumped exchange-traded funds at a record pace on Wednesday, with semiconductor funds bearing the brunt of the selling as investors cashed in gains from the artificial intelligence rally.
According to The Kobeissi Letter, retail investors sold about $300 million in ETFs, their largest single-day sale on record—surpassing the previous high of $260 million set during the 2020 pandemic.
SOXX Sees Largest Single-Day Outflow in a Year
The iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) saw about $270 million in retail outflows on the day, its largest single-day withdrawal in at least 12 months, contributing to $695 million in outflows for the week — the largest weekly exodus since mid-August.
The ETF has $48.21 billion in assets under management and charges an expense ratio of 0.33%.
Year to date, the fund has returned 82.56% and gained 112.95% over the past year.
“Retail investors are locking in gains in tech,” the market commentator added.
SOXL’s Leveraged Bet Unwinds Even Faster
The Direxion Daily Semiconductor Bull 3X ETF (NYSE:SOXL) saw $1.2 billion in weekly withdrawals, its largest since June.
It has $24.73 billion in assets and charges an expense ratio of 0.75%.
It has gained 220.60% so far this year and 345.18% over the past year.
MTUM Sees Steady, Smaller Outflows
The iShares MSCI USA Momentum Factor ETF (BATS:MTUM) recorded $12 million in outflows on Wednesday, after $30 million on Tuesday.
It holds $20.95 billion in assets and charges an expense ratio of 0.15%.
The ETF has returned 26.02% year-to-date and 24.59% year-over-year.
BREAKING: Retail investors sold -$300 million in ETFs on Wednesday, their largest daily sale on record.
— The Kobeissi Letter (@KobeissiLetter) September 27, 2026
This also surpasses the previous daily record of -$260 million set during the 2020 pandemic.
This comes as the semiconductor ETF, $SOXX, alone recorded -$270 million in… pic.twitter.com/kE2TgCp5gd
Meta’s Muse Sparks a Chip Rally
The selling follows a sharp run-up in chip stocks last week with Advanced Micro Devices Inc. (NASDAQ:AMD) crossing $1 trillion in market value for the first time.
Meta Platforms Inc.‘s (NASDAQ:META) Muse helped the company briefly overtake Space Exploration Technologies Corp. (NASDAQ:SPCX) as the seventh-largest by market value. However, the stock lost about 4% on Friday.
Price Action: The iShares Semiconductor ETF closed 1.17% higher on Friday at $572.68, but fell 2.4% to $558.92 in early pre-market trading on Monday, according to Benzinga Pro.
Benzinga edge rankings indicate the iShares Semiconductor ETF has a Momentum score in the 96th percentile, with positive price trends across the short, medium, and long term.
See More:Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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