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Investors try to catch ‘falling knife’ with bets on risky funds during chip rout

  • Posted on August 23, 2026
  • By Financial Times
  • 2 Views
  • 1 min read
In brief

During the recent semiconductor sector downturn, risk-taking investors have shown increased appetite for leveraged single-stock exchange-traded funds, channeling billions in fresh capital despite significant portfolio losses. This contrarian investment strategy reflects a 'catching the falling knife' approach, where traders bet on mean reversion and recovery opportunities in depressed tech equities. The phenomenon highlights the tension between volatility-driven losses and institutional confidence in sector fundamentals.

Summary auto-generated by AI from the original publisher's content. Editorial standards.

Investors try to catch ‘falling knife’ with bets on risky funds during chip rout
Investors try to catch ‘falling knife’ with bets on risky funds during chip rout

Leveraged single-stock ETFs attracted billions of dollars of net inflows even as they plunged during market sell-off
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Author
Financial Times

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