Investors Overextend in Leveraged Semiconductor ETFs After 202% YTD Surge

Goldman Sachs warns investors are overdoing semiconductor bets via leveraged ETFs like Direxion's 3x bull fund, up 202.1% YTD through April 2026, amid heavy retail flows. This builds on semiconductors' dominance at 14% of S&P 500 weight—led by Nvidia—where SMH rocketed 35% in 20 days, top six holdings claim 53% of the ETF, and the index would be 7-8% lower without semis. While SOXX gained 53.3% in April versus S&P 500's 10.4%, experts urge non-leveraged plays like SOXX and hedging due to leverage decay and concentration risks.