Funds flowing into semiconductor ETF?

A large number of funds flowed into several ETF that invest on semiconductor and other technology corporates. Semiconductor industry, which experienced a collapse a month ago, is especially benefiting from those funds. Although recent stock price went down due to the Fed’s plan to raise the interest rate earlier, it seems to be recovering thanks to positive outlook for semiconductor business.

According to a financial data platform on 14, 128 billion won flowed into ‘Tiger 미국필라델피아반도체나스닥 ETF’, which follows America’s Philadelphia semiconductor index from the 14th of last month to today.

Since this year, major tech stocks in the US including semiconductor companies declined due to various unfavorable factors such as the Fed’s hawkish stance and customer price growth. Nasdaq dropped by 7.40 percent during the last month. Philadelphia semiconductor index, one of the representative semiconductor indexes in the US, dropped by 11.7 percent during the same period, which was the worst performance since March 2020. According to a security firm, all major 50 semiconductor companies except TSMC faced fall in stock price during last month.