NH-Amundi Asset Management Rebalances 'HANARO Fn K-Semiconductor' ETF... Adds SK Square to Portfolio

The 'HANARO Fn K-Semiconductor' Exchange Traded Fund (ETF) has newly added SK Square to its portfolio through a rebalancing. In addition, the weight of Samsung Electro-Mechanics, which previously held the largest share, has been reduced.

On June 22, NH-Amundi Asset Management announced that it had completed the June regular rebalancing of the HANARO Fn K-Semiconductor ETF, which invests in key stocks in the domestic semiconductor industry.

The HANARO Fn K-Semiconductor is a product that includes 20 leading stocks driving Korea's semiconductor industry. It offers a broad portfolio that covers not only SK hynix, Samsung Electronics, SK Square, and Samsung Electro-Mechanics, but also competitive materials, parts, and equipment (so-called “Sobu-jang”) companies such as Hanmi Semiconductor, Jusung Engineering, and ISU Petasys.

The core aspect of this rebalancing is the new inclusion of SK Square. The 'FnGuide K-Semiconductor Index' tracked by this ETF is calculated using a free-float market capitalization weighting method. It includes stocks either classified in the semiconductor industry under the FnGuide Industry Classification System (FICS) or those whose semiconductor-related revenue accounts for more than 10% of their total sales over the past two years. At the end of May, SK Square was newly classified as part of the semiconductor industry under the FICS, and this was reflected in the ETF during this rebalancing.

Additionally, the weight of Samsung Electro-Mechanics, which had previously been the largest holding, was adjusted downward. The sharp rise in Samsung Electro-Mechanics' share price since April had rapidly increased its weight within the ETF, but this was reduced in accordance with the market capitalization weighting methodology.

The HANARO Fn K-Semiconductor ETF has recently continued to deliver outstanding performance. As of June 18, its year-to-date return stood at 301.14%, the highest among domestic equity semiconductor ETFs excluding leveraged products. Over the past one month, the return was 50.89%, and over the past three months, it was 131.21%. Along with strong performance, the net asset size is also growing rapidly. After surpassing KRW 4 trillion at the end of last month, net assets exceeded KRW 5 trillion as of June 17.

NH-Amundi Asset Management assessed that, although domestic semiconductor stocks surged significantly in the first half of the year, there is ample room for further growth based on fundamentals. This is attributable to two main factors: first, global artificial intelligence (AI) investment has been constrained by a shortage of memory supply, leading big tech companies to focus their infrastructure buildout on memory-centric solutions; second, expectations surrounding SK hynix's plans to list American Depositary Receipts (ADRs) and the upcoming second-quarter earnings season this year are also cited as factors supporting additional gains.

Kim Seungcheol, Head of ETF Investments at NH-Amundi Asset Management, stated, "The HANARO Fn K-Semiconductor ETF has consistently proven its excellent performance through a differentiated methodology and is a leading product for investing in Korea's semiconductor sector. With this rebalancing, we expect to respond more effectively to the rapidly changing semiconductor market and to deliver a highly sophisticated product that meets investors' expectations."

This content was produced with the assistance of AI translation services.