Retail Investors Flock to Semiconductor ETFs as Gold and Bitcoin Slide

Since April, US gold and Bitcoin-related exchange-traded funds (ETFs) have seen a significant outflow of about $12 billion. Meanwhile, semiconductor ETFs have recorded a net inflow of around $20 billion, with investors focusing on the technology growth sector.

This trend accelerated in mid-May, with the outflow from gold and Bitcoin ETFs increasing more than threefold, while the inflow into semiconductor ETFs doubled. The world's largest gold ETF, GLD, has fallen about 13% since early April, and the Bitcoin ETF, IBIT, has dropped around 12% during the same period.

However, semiconductor ETFs have seen significant gains, with SOXX rising approximately 81% and SMH increasing by about 60%. Analysts suggest that this market shift indicates a 'risk preference switch,' with retail funds shifting from safe-haven assets and crypto assets to high-growth sectors.