Top semiconductor ETFs like the Direxion Daily Semiconductor Bull 3x Shares (SOXL), VanEck Semiconductor (SMH), and iShares Semiconductor (SOXX) rebounded in the extended hours after the strong Nvidia... ...

Group 1: ETF Inflows - Investors invested $37.6 billion into U.S.-listed ETFs during the week ending October 31, indicating strong inflows despite a hawkish tone from the Federal Reserve [1] - U.S. equity ETFs led inflows with $19.3 billion, followed by U.S. fixed income funds at $8.7 billion, international equity ETFs at $8.6 billion, and international fixed income products at $2.2 billion [1] Group 2: Market Conditions - The macro backdrop remained supportive with stocks near record highs, driven by strong gains in technology stocks such as Nvidia and Amazon [2] - The Federal Reserve cut rates as expected, but Chair Jerome Powell's comments suggested a December rate cut was not guaranteed, diverging from market expectations [2] - Futures markets indicate a 67% chance of another rate cut next month, down from pre-meeting levels [2] Group 3: Top Performing ETFs - The SPDR S&P 500 ETF Trust (SPY) saw the highest inflows with $4.4 billion, followed by the Vanguard Information Technology ETF (VGT) with $2.1 billion, and the Invesco NASDAQ 100 ETF (QQQM) with over $1 billion [4] - On the fixed income side, the JPMorgan Municipal ETF (JMUB) led with $1.9 billion in inflows [4] Group 4: International ETFs - The Vanguard FTSE Developed Markets ETF (VEA) and the JPMorgan BetaBuilders Europe ETF (BBEU) had notable inflows of $805 million and $757 million, respectively [5] Group 5: ETF Outflows - The iShares Russell 2000 ETF (IWM) experienced $1.8 billion in redemptions as small caps underperformed large caps [6] - The Direxion Daily Semiconductor Bull 3x Shares (SOXL) saw $1.3 billion in outflows as traders took profits after a rally in semiconductor stocks [6] - The SPDR Gold Shares (GLD) and the iShares 0–3 Month Treasury Bond ETF (SGOV) each had about $1 billion in redemptions, reflecting profit-taking and a dip in demand for ultra-short Treasuries [7]

Core Viewpoint - The Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL) is highlighted as a high-risk, high-reward investment option, particularly suitable for tactical trading during earnings seasons in the semiconductor sector [2][3][7]. Performance Overview - SOXL has shown significant volatility, with a 225% increase in 2023, 118% in 2021, and over 230% in 2019, but also experienced an 85% loss in 2022 and a 12.5% decline in a strongly positive market year [3][4]. - The fund has had six years in the last decade where it gained more than 100% [3]. Investment Strategy - SOXL is designed for short-term trading rather than long-term holding, with a focus on daily performance and tactical positioning [3][4][7]. - Investors should be prepared for potential losses and should monitor the fund closely, as it requires active management [4][7]. Market Context - The semiconductor sector is currently experiencing earnings season, which can lead to significant price movements in individual stocks within the sector [3][5]. - The fund's performance can be influenced by broader market conditions, such as geopolitical tensions, exemplified by a near 20% drop due to U.S.-China relationship concerns [3][7]. Portfolio Considerations - SOXL should be treated as a separate component of an investment portfolio, complementing long-term semiconductor exposure through broader indices like the S&P 500 [5][7]. - The fund is part of a suite of leveraged products offered by Direxion, which allows for targeted exposure to specific sectors [6][7].