KB Asset Management Launches 'RISE Semiconductor Materials, Components and Equipment Active ETF'

KB Asset Management is launching an actively managed exchange-traded fund (ETF) that selects key companies among domestic semiconductor materials, components and equipment firms for investment.

On October 20, KB Asset Management said it would list the RISE Semiconductor Materials, Components and Equipment Active ETF that day.

The fund uses the KEDI Semiconductor Materials, Components and Equipment Index as its benchmark and follows an active strategy, flexibly adjusting the weightings of sectors and individual stocks according to market conditions.

The semiconductor materials, components and equipment industry is segmented into front-end and back-end equipment, substrates, packaging and testing (OSAT), materials, and components. Performance and share-price movements vary across these segments depending on market factors such as memory-sector capital expenditure and foundry orders.

Recently, interest in South Korea's semiconductor industry has grown, buoyed by rising demand for artificial intelligence (AI) servers and higher memory prices. The spot price of DDR5 DRAM has risen by about 590% from October 2025, while the spot price of NAND flash has risen by about 360% from January 2026. The resulting expansion of capital investment by memory manufacturers is expected to improve the performance of companies in the materials, components and equipment sector.

The fund will be managed by specialists including research staff specializing in semiconductor materials, components and equipment, active ETF managers, private-equity team members, and small- and mid-cap fund managers. The team plans to select investments and adjust their weightings based on industry analysis and assessments of individual companies' competitiveness.

Major holdings include Samsung Electro-Mechanics (8.37%), GigaVis (8.01%), SIMMTECH (7.83%), TES (7.51%), PSK Holdings (7.27%), HPSP (7.23%), PSK (7.16%), ISU Petasys (5.84%), LEENO Industrial (5.08%), and Eugene Technology (4.72%). The total annual fee is 0.63%, and distributions will be paid on the last business day of January, April, July, and October each year, among other dates.

Yook Donghwi, head of ETF Product Marketing at KB Asset Management, said, "Investment opportunities in the semiconductor materials, components and equipment market can vary depending on sector performance and individual companies' order situations. We plan to respond to market changes by adjusting investment weightings and holdings based on sector trends and the competitiveness of individual companies."

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