The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) lost over 25% of its value last week. A broader semiconductor sector rout triggered the decline in the leveraged fund. Hotter-than-expected inflation data and new competition from Chinese memory chip manufacturers drove the sell-off.
SOXL attracted a record $3.8 billion in investor inflows during the same period. This represents the highest weekly intake in the fund's history. The move marks the third consecutive week of positive inflows for the ETF.
Investors are treating the sharp price downturn as a buying opportunity. This record inflow highlights a significant divergence between price action and investor sentiment.