On August 23, the Financial Times reported that despite the semiconductor product market's underwhelming performance in July and August, investors have continued to funnel billions of dollars into risk-leveraged funds that track semiconductor companies, betting on an industry resurgence. Data from Morningstar reveals that the Direxion Daily Semiconductor Bull 3X Shares—the largest leveraged exchange-traded fund (ETF) focused on chip stocks—drew in nearly $7 billion in net inflows during July and the first two weeks of August. This fund offers triple-leveraged exposure to the NYSE Semiconductor Index, which encompasses 30 U.S. chip companies. Although the index has dropped more than 20% from its peak, the fund has plummeted by 70% from its June high to its subsequent low. Both during and after the chip stock rout, individual stock leveraged funds tracking chipmakers like SK Hynix and SanDisk also saw substantial capital inflows. Goldman Sachs U.S. equity strategist Snyder pointed out that "buying the dips and selling the rallies" is a common tactic among many leveraged ETF investors. However, Barclays' head of derivatives research, Angupta, warned that while the trend of capital flowing into leveraged ETFs clearly signals a "buying the dips" mentality, this strategy can occasionally be exceedingly perilous.