Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAustin SmithSun, June 7, 2026 at 7:22 PM GMT+2 9 min readQuick ReadUSD shed 17% on June 5, turning $10,000 into roughly $8,316, as the 2x daily-reset structure amplified a chip sector selloff.Hock Tan's warning that Google may diversify chip suppliers, paired with a $1.2 billion guide miss, sent AVGO down 8% and NVDA down 6%.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ProShares Ultra Semiconductors 2X Shares didn't make the cut. Grab the names FREE today.A 2x leveraged semiconductor ETF will eventually give you a day like June 5, 2026. ProShares Ultra Semiconductors (NYSEARCA:USD), which seeks twice the daily return of the Dow Jones U.S. Semiconductors Index, closed at $88.68 on Friday, down roughly 17% from $106.64 the day before. A holder who walked in Friday morning with $10,000 walked out with about $8,316 by the close. A holder who entered on May 29 at $102.12 was down about 13% on the week, even though the same starting point a month ago would still have them roughly flat.For context on what the wrapper does and does not do, the unleveraged iShares Semiconductor ETF (NASDAQ:SOXX) fell roughly 10% on the same day, from $602.72 to $539.77. The leveraged fund actually fared slightly worse than a straight doubling, which is how the math is supposed to work on a sharp single-day drop, and it is the first thing worth understanding before deciding whether the chart is a buying opportunity or a warning.USD is engineered to deliver twice the daily price change of its semiconductor benchmark, not twice the cumulative return over any longer period. Each day the fund rebalances its swap exposure back to 2x of the new, smaller (or larger) net asset value. On a day when the underlying index falls in the high single digits, that reset is unforgiving. The semiconductor index proxy fell roughly 10%, and USD printed a loss in the high teens. That is the wrapper doing exactly what the prospectus says it will do, not a tracking error.The flip side of this same machinery is why the year-to-date number still looks heroic. USD is up about 69% year to date, from $52.45 on December 31, and 196% over one year, from $29.94 on June 5, 2025. SOXX, the 1x version of the same exposure, is up about 79% year to date and roughly 152% over one year. The leveraged fund did not deliver a clean 2x of those longer numbers, partly because of fees and financing costs, but mostly because the underlying climbed in a long, low-volatility line for most of the past twelve months. Daily-reset leverage compounds beautifully up the right side of a smooth uptrend, and it bleeds in chop. June 5 was the first day in a while that the chop showed up.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info