MTUM is trading 1.6% down today as the fund faces continued pressure from its heavy exposure to information technology following a sharp sell-off in the tech and semiconductor sectors.
- Investors are rotating out of growth and AI-related stocks into defensive sectors due to concerns over lofty valuations, record TSMC capex plans, and renewed Fed hawkishness.
- Global chipmakers remain under pressure despite strong TSMC earnings, as skepticism grows regarding whether the AI infrastructure boom can justify current market valuations.
- Rising geopolitical tensions with Iran and higher oil prices are further dampening risk appetite, amplifying the downside for tech-heavy indices and ETFs.