Semiconductor ETFs Now Dominate the Most‑Traded List — A Signal You Can’t Ignore

Eric Balchunas said half of the most-traded ETFs in early June were semiconductor-related, a phenomenon he noted having never witnessed before.

SOXS surged to the top of the volume list after a sharp semiconductor sell-off driven by rising bond yields and rate-hike fears.

Bearish semiconductor plays have become summer's hottest trade, echoing Michael Burry's SOXX puts, with 2X short ETFs on Nvidia and SanDisk among the most notable examples.

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The semiconductor rally has continued to act as a trader's playground. In a recent comment on X, Eric Balchunas, a senior ETF analyst, remarked on a snapshot of his that half of the most-traded ETFs on that day (that was at the start of June) were related to the semiconductor industry.

Balchunas has his fair share of experience, yet he said he's never seen anything like that. That's a big deal. And what's even more remarkable are the volumes in such ETFs. While the snapshot is more than remarkable, things have since settled a bit.

While such semi-related ETFs don't comprise half of the top ETFs in the volume list, many of them are sticking around. Indeed, there's been no shortage of momentum and volatility. And until things settle, I'd look for bets for and against the names to keep drawing in considerable interest from across the board.

As it stands today, the Direxion Daily Semiconductor Bear 3X Shares ( NYSEARCA:SOXS ) is at the top of the list. After last Friday's plunge in the semiconductor stocks, sparked by rising bond yields and fears that hot jobs could cause rate increases, it should be no mystery as to why this aggressive ETF is back in the spotlight.