Retail Investors Sold Record ETF Amount

Individual investors offloaded $300 million in exchange-traded funds as they moved to lock in gains from an AI rally.

Updated on Sept. 28, 2026 in Investing

Isometric editorial illustration featuring stacked geometric blocks and cascading metallic spheres, representing institutional capital movement. — Retail investors liquidated a record $300 million in exchange-traded funds on Wednesday, locking in profits following the recent surge in artificial intelligence stock valuations. AI Illustration. Upload story photo >

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Is now a good time for retail investors to sell tech stocks to lock in gains?

Retail investors sold $300 million in exchange-traded funds on Wednesday, marking the largest single-day retail ETF sale on record. The move surpassed the previous 2020 record of $260 million.

Why it matters

Investors are liquidating positions to realize profits following a sharp increase in tech stock values. The activity suggests a tactical shift as market participants seek to capture returns from the recent artificial intelligence rally.

Retail investors sold $300 million in ETFs on Wednesday, while the Direxion Daily Semiconductor Bull 3X ETF recorded $1.2 billion in weekly withdrawals. The iShares PHLX SOX Semiconductor Sector Index Fund experienced $270 million in single-day outflows.

The players

iShares PHLX SOX Semiconductor Sector Index Fund

This investment vehicle tracks the performance of the PHLX Semiconductor Sector Index and holds $48.21 billion in total assets.

Direxion Daily Semiconductor Bull 3X ETF

This leveraged fund seeks daily investment results and currently manages $24.73 billion in total assets.

Advanced Micro Devices Inc.

This multinational semiconductor company reached a $1 trillion market value last week.

iShares MSCI USA Momentum Factor ETF

This fund focuses on stocks with strong price performance and saw significant outflows during the week.

The details

Semiconductor sector funds faced significant capital outflows as investors recalibrated their portfolios. Specifically, the iShares MSCI USA Momentum Factor ETF saw $12 million in outflows on Wednesday, following a $30 million exit on Tuesday.

Retail investors sold $300 million in ETFs on Wednesday.
The 2020 record for ETF sales was $260 million.
The MTUM fund recorded $30 million in outflows on Tuesday.
Meta stock lost 4% of its value on Friday.
Mid-August marked the previous largest weekly exodus from semiconductor funds.

Market Dynamics

The surge in retail selling marks a departure from the historical 2020 record of $260 million in single-day ETF sales. This activity reflects broader macroeconomic cycles where retail participation is increasingly sensitive to rapid valuation changes in tech-heavy indices.

Retail investors may see increased volatility in tech-heavy portfolios as funds experience large outflows. Investors should evaluate their exposure to semiconductor ETFs, which currently carry expense ratios of 0.33% to 0.75% for these specific funds.

The takeaway

Large-scale retail liquidations often reflect a defensive posture following period-specific bull runs in volatile sectors. Investors should maintain focus on their long-term asset allocation rather than reacting to short-term sector-wide outflow trends.