Individual investors are piling into semiconductor ETFs at a historic pace: Since January 2025, retail investors have purchased a net +$1.0 billion of the Semiconductor ETF, SMH. Over the same period, retail purchases in the 3x leveraged short semiconductor ETF, SOXS, have surged to +$1.2 billion. Retail inflows into both funds have more than DOUBLED since January 2026. Furthermore, the 3x leveraged long semiconductor ETF, SOXL, has attracted +$600 million in retail purchases since January 2025. At the same time, the Semiconductor ETF, SOXX, has seen +$400 million in retail inflows. Semiconductors are the hottest trade in the market.(The Kobeissi Letter)