Bond Mixed ETFs Continue Launch Rally Amid 'Rollercoaster KOSPI,' Outperform During 'Samsung Electronics-SK hynix' Plunge

After the 'Samsung Electronics and SK hynix' Launch in February, Differentiated ETFs Emerge
Currency Diversification by Including U.S. Treasury Bonds Instead of Korean Bonds
Products Expanding Beyond Semiconductors to Include Financial and Holdi

As market volatility has persisted for over a month, there has been a surge in the launch of “Bond Mixed 50 Exchange Traded Funds (ETFs)” that allocate 50 percent each to individual stock picks such as semiconductors and to bonds. While similar ETFs featuring “Samsung Electronics and SK hynix” flooded the market earlier this year, this time, asset managers are differentiating their products by company.

According to the financial investment industry as of August 14, Mirae Asset Global Investments plans to list a new ETF called “TIGER Samsung Electronics SK hynix US Bond Mixed 50.” This ETF features a portfolio of 25% Samsung Electronics, 25% SK hynix, and the remaining 50% in “U.S. short-term Treasuries.” Most of the earlier Samsung Electronics and SK hynix Bond Mixed 50 products have allocated their bond portion to short-term Korean government bonds. By including U.S. short-term Treasuries alongside leading Korean semiconductor stocks, the new ETF is expected to achieve not only diversification across equity and bond asset classes but also across currency assets in both the won and U.S. dollar. Another advantage cited is the potential to earn higher interest income from U.S. Treasuries compared to Korean government bonds.

Korea Investment Management is also preparing to list the “ACE Samsung Electronics SK hynix Plus Bond Mixed 50” ETF. As the prospectus has not yet taken effect, specific details are unavailable, but the addition of “Plus” to the product name suggests that it will employ a new management strategy compared to similar types of ETFs.

The range of underlying assets is also diversifying beyond just Samsung Electronics and SK hynix. VI Asset Management, on August 11, launched the “FOCUS Financial Semiconductor Holding Company Bond Mixed 50 Active” ETF based on the performance of similar funds. This product allocates up to 50% to financial, semiconductor, and holding companies, while the remaining 50% is invested in a basket of three types of 3-year Korean government bond futures contracts. VI Asset Management explained, “This product is designed for diversified investment in key sectors—semiconductors, financials, and holding companies—that lead the Korean stock market, rather than concentrating on certain stocks such as Samsung Electronics and SK hynix. In addition to this diversification, the active management approach allows for flexible adjustment of sector and stock weightings according to market conditions, which is a key differentiating factor.” As of August 13, the top constituents were Samsung Electronics (9.39%), SK hynix (8.16%), Doosan (3.27%), Samsung Electro-Mechanics (2.41%), and HD Hyundai (2.40%).

There is also a product that combines SK hynix with U.S. company SanDisk. Hanwha Asset Management launched “PLUS SK hynix SanDisk Bond Mixed 50” on August 4. By building the portfolio around two “pure play” memory semiconductor players, the product aims to ensure that non-memory business results do not dilute the memory segment, and that improvements in the memory semiconductor industry and overall performance are fully reflected in the stock prices. The bond component (50%) consists of nine different Korean government bonds.

Since the launch of “RISE Samsung Electronics SK hynix Bond Mixed 50” by KB Asset Management in February of this year, more than 10 Bond Mixed 50 ETFs have been introduced in succession, gaining popularity. Compared to investing in individual stocks, these ETFs help diversify risk, and they can be included up to 100% in pension accounts regardless of risk asset limits. In fact, following the KOSPI’s surge to the 9,300 level and subsequent peak, Bond Mixed 50 ETFs have experienced smaller declines compared to individual stocks. According to the Korea Exchange, from June 19 to August 12, Samsung Electronics dropped by 29.52%, SK hynix by 43.99%, but RISE Samsung Electronics SK hynix Bond Mixed 50 fell by only 18.85% over the same period.

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