A massive leverage unwind is underway in semiconductor ETFs: Assets under management (AUM) in US leveraged semiconductor ETFs have dropped -$63 billion from the June peak, to $100 billion, the lowest since late April. This marks a -39% decline, the largest drawdown since April 2025, when assets more than halved from their August high. This also accounts for 63% of the -$100 billion decline in AUM across all US leveraged ETFs over the same period. The selloff came after assets in these funds nearly tripled between the last week of March and their June peak. Even after this sharp unwind, leveraged semiconductor ETF assets remain +400% above January 2023 levels. Investors are aggressively cutting leverage.(The Kobeissi Letter)