US Fund Inflows Top $100B For 4th Straight Month As Bonds, Semiconductor ETFs Attract Billions

• The research firm said that taxable-bond funds drove the most inflows, while continued interest in semiconductor stocks also contributed significantly. 
• Taxable-bond funds attracted $67 billion in July, marking a third consecutive month above $60 billion, the firm said.
• Morningstar also noted that semiconductor funds attracted the most interest among equities, led by iShares Semiconductor ETF, which clocked a $7 billion inflow.

Investors are sending a surprisingly mixed signal to US markets: they are piling into bonds to lock in attractive yields while simultaneously chasing some of the market’s hottest technology and semiconductor trades. 

Long-term U.S. fund inflows topped $100 billion for a fourth consecutive month, marking the first such streak on record, according to Morningstar. 

In a report released on Tuesday, the research firm said that taxable-bond funds drove the most inflows, while continued interest in the technology sector, especially semiconductor stocks, also contributed to the uptick.

Why Are Investors Pouring Into Bonds? 

Taxable-bond funds attracted $67 billion in July, marking a third consecutive month above $60 billion, the firm said. 

Ultrashort bond funds led inflows with more than $15 billion, while collateralized loan obligation (CLO) funds drew nearly $3 billion, their fourth-largest monthly inflow on record. The category has grown tenfold over three years as investors seek high-quality assets with limited interest-rate sensitivity and higher yields than money-market funds. 

Long-government funds also saw their strongest inflows since May 2025, helped by elevated long-term yields, with the 30-year Treasury above 5% for most of July, Morningstar said. 

Equity Flows Were Lukewarm – Except In Tech SZ

Morningstar noted that U.S. equity funds saw a lukewarm net inflow of $3 billion in July, with passive inflows into large-blend funds attracting $36 billion but mid-cap and small-cap witnessing significant outflows. 

However, the technology sector buoyed equities, accounting for $16 billion of the monthly inflows out of over $18 billion in inflows into sectoral funds. 

Semiconductor ETFs Attract Billions Despite July Sell-Off 

Within tech, Morningstar noted that semiconductor funds attracted most interest, led by iShares Semiconductor ETF (SOXX) clocking a $7 billion inflow. 

Leveraged equity funds also saw a record monthly inflow, “largely owing to significant interest in a triple-leveraged semiconductor fund,” the firm said. 

Additionally, Roundhill Investments stood out on the back of the Roundhill Memory ETF (DRAM), which has seen unprecedented growth since its April launch, attracting nearly $25 billion in assets within four months, the firm said.  

Despite losing almost 27% of its value in July, the ETF continued to draw investors following its strong early performance. DRAM accounted for most of Roundhill’s $6.4 billion in July inflows and now represents 72% of the firm’s total assets, as per Morningstar. 

What Do Retail Traders Think About SOXX, DRAM?

On Stocktwits, retail sentiment around SOXX stock slipped from ‘bearish’ to ‘extremely bearish’ territory over 24 hours. 

Meanwhile, sentiment around DRAM was ‘neutral’ at the time of writing amid ‘normal’ message volumes. 

SOXX has jumped more than 69% in 2026, while DRAM has rallied more than 98% since its launch. 

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