During the semiconductor ETF's decline, traders bought the dip in large numbers, funneling $12 billion into the fund before yesterday's rebound.

July 31st, Bloomberg's Senior ETF Analyst Eric Balchunas wrote that before yesterday's sharp rebound in the semiconductor sector, the Semiconductor ETF had attracted approximately $12 billion in inflows. Despite the Semiconductor ETF accounting for only about 1% of the total ETF assets under management, the inflows this week represented 25% of the total ETF net inflows.

He stated that speculators had aggressively bought the dip during the decline from Monday to Wednesday and were rewarded again after yesterday's 7% rebound in the semiconductor sector. Compared to the historical inflows into these ETFs, the recent data is at an unusually high level, indicating a significant increase in related trading activity.