ETFs: AI-Driven Sell-Off Gains Momentum

The trend toward selling AI stocks is gaining momentum, while long-favorite tech and semiconductor ETFs are being shed from portfolios. Broadly diversified equity ETFs, on the other hand, remain in demand—though there is also some profit-taking here.

July 28, 2026. FRANKFURT (Deutsche Börse). The DAX is heading toward its all-time high, but doubts about AI valuations are also evident in ETF trading. “We’re seeing mostly sell-offs in tech ETFs,” reports Frank Mohr of Société Générale. Overall, however, sentiment remains positive: Mohr reports a clear buying surplus.

Nasdaq ETFs and, more specifically, AI or IT ETFs are currently clearly on the sell lists. The trend is intensifying today, Tuesday: On the South Korean stock exchange in Seoul, AI heavyweights SK Hynix and Samsung posted significant losses; the Kospi index fell by 11 percent and has now lost a third of its value since its high. The U.S. tech index, the Nasdaq, has lost nearly 10 percent from its record high.

Société Générale clients are selling off Nasdaq ETFs, as well as the long-time favorites iShares S&P 500 IT (IE00B3WJKG14) and Xtrackers AI & Big Data (IE00BGV5VN51), and the Xtrackers Future Mobility (IE00BGV5VR99). Ivo Orlemann of ICF Bank reports “high trading volumes and almost exclusively redemptions” in the VanEck Semiconductor ETF, which provides exposure to semiconductor companies (IE00BMC38736). There is also significant activity in the WisdomTree PLHX Semiconductor 3x Daily Short ETN (XS3091646797).

Global and U.S. ETFs: “There’s also been quite a bit of selling”

World and U.S. stocks continue to dominate the market for broadly diversified equity ETFs. “Purchases account for two-thirds of the activity here, but there’s also quite a bit of selling,” Mohr notes. On the shopping lists: S&P 500 trackers from iShares (IE00B5BMR087) and Vanguard (IE00B3XXRP09). In contrast, the S&P 500 ETF from Invesco (IE00B3YCGJ38) is being sold off. Among global stocks, the iShares Core MSCI World (IE00B4L5Y983) and the Vanguard FTSE All-World (IE00B3RBWM25) are in demand. For the iShares MSCI World SRI (IE00BYX2JD69), both sides of the market are being traded. Almost always in demand at ICF: the VanEck Morningstar Developed Markets Dividend Leaders (NL0011683594).

Mohr sees a slight buying surplus for European stocks, as well as more buying than selling for emerging market stocks, such as the iShares MSCI Emerging Markets (IE00B0M63177) and the Xtrackers MSCI Emerging Markets (IE00BTJRMP35). The MSCI Emerging Markets index rose sharply from April through June but has recently declined. ICF is seeing unusually high trading volume in Hong Kong stocks, mostly in the form of redemptions (IE00BMWXKN31).

Healthcare Stocks in Demand

According to Mohr, in addition to the tech sector, the healthcare sector in particular is playing a significant role. Purchases are on the rise here, such as in the Amundi Stoxx Europe 600 Healthcare (LU2082997516) or the Amundi MSCI World Health Care (LU0533033238). The L&G Clean Water (IE00BK5BC891) remains a favorite among ICF clients. Orlemann, on the other hand, reports “only redemptions” for HANetf’s Defiance Drone (IE0003XW12I8). The ETF, launched in March, focuses on companies from developed and emerging markets that operate in the field of unmanned aerial systems, but has posted net price losses so far.