Technology Select Sector ETF Draws $8.3B Inflows as Semiconductor Demand Surges
XLK•The Technology Select Sector SPDR Fund attracted $8.3B in net inflows last week, second only to the iShares Core S&P 500 ETF, reflecting heightened semiconductor demand. SpaceX shares begin passive index inclusion this week while leveraged ETFs saw $507.7M net outflow, underscoring continued tech investor appetite.
1. XLK Records $8.3B Net Inflows
The Technology Select Sector SPDR Fund recorded $8.3B of net new investments last week, making it the second-largest weekly inflow recipient after the iShares Core S&P 500 ETF and outpacing the VanEck Semiconductor ETF’s $7.4B.
2. SpaceX Enters Passive Indexes
Shares from the recent SpaceX IPO begin inclusion in major passive equity indexes this week, amplifying thematic ETF appeal and likely driving sustained demand for technology sector exposure.
3. Wider ETF Flow Landscape
International equity funds attracted $21.6B while U.S. fixed income and international fixed income drew $8.2B and $2.7B respectively, as commodity and currency ETF flows remained muted.
4. Outflows and Future Outlook
The leveraged ETF category posted a $507.7M net outflow, and targeted funds like the Baron First Principles ETF and Tema Space Innovators ETF saw redemptions of $1.5B and $690M, indicating selective repositioning ahead of summer markets.
