Hana Asset Management's Two Semiconductor ETFs Surpass 500 Billion Won in Total Net Assets

Hana Asset Management announced on June 24 that the total net assets of the "1Q K-Semiconductor TOP2+" and "1Q K-Semiconductor TOP2 Bond Blend 50" funds, which invest in major domestic semiconductor companies, have surpassed 500 billion won.

According to the Korea Exchange, as of June 22, the total net asset value of these two exchange-traded funds (ETFs) stood at 501.7 billion won. This milestone comes just about two months after their listing on the KOSPI market on April 14. Since their listing, individual and bank clients have recorded a strong cumulative net buying trend, with a total net purchase of 252.4 billion won in these two semiconductor ETFs.

The "1Q K-Semiconductor TOP2+" tracks the "NICE K-Semiconductor TOP2 MAX+ Index," and features an allocation of approximately 27.5% each to Samsung Electronics and SK hynix. The combined weighting of the two companies is about 55%, with the remaining 8 leading domestic semiconductor companies included in the portfolio. It can be traded through both general accounts and retirement pension accounts (DC and IRP), with up to 70% included as risky assets in retirement pension accounts. The total annual fee is 0.20%.

The "1Q K-Semiconductor TOP2 Bond Blend 50" tracks the "KEDI K-Semiconductor TOP2 Bond Blend Index," and is a second-generation bond blend ETF composed of approximately 25% Samsung Electronics, 25% SK hynix, and 50% short-term government and monetary stabilization bonds. It can be fully included (up to 100%) in retirement pension accounts (DC and IRP), and is also available within the 30% limit for low-risk asset allocation. The total annual fee is 0.01%.

Recently, with the continued strength in global memory semiconductor prices, Korea's semiconductor export value has also been rising sharply day after day. According to the Korea Customs Service, from June 1 to June 20 this year, Korea’s semiconductor exports soared by an impressive 188% year-on-year to a record high of 22.5 billion dollars.

Market experts assess that this semiconductor cycle is much stronger than the supercycle seen from 2016 to 2018. This is attributed to the prolonged increase in product unit prices and the steady supply of volumes. In particular, while demand for high-bandwidth memory (HBM) and other AI-related products remains robust, the increased process complexity makes supply expansion difficult, further supporting the long-term upward outlook for leading domestic semiconductor stocks.

Tae Woo Kim, CEO of Hana Asset Management, stated, "Through Hana Asset Management’s 1Q ETFs, we hope investors can more easily access Korea’s key semiconductor companies such as Samsung Electronics and SK hynix. With the expansion of demand for advanced semiconductors such as AI chips and high-bandwidth memory, the competitiveness of leading domestic semiconductor companies will attract even greater attention."

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