Samsung Group Stock Fund Containing Electronics and SDI Shows 'High High' Returns

'Korea Investment KINDEX Samsung Group Stocks...' Highest 1-Year Return at 52%

[Asia Economy Reporter Minji Lee] As Samsung Electronics and other group stocks continue to hit new highs, Samsung Group stock funds are also delivering high returns.

According to financial information provider FnGuide on the 4th, 24 Samsung Group stock funds set up domestically recorded an average return of 36.28% over the past year as of the 31st of last month. This was similar to the domestic equity funds' return of 37% during the same period and higher than the active equity funds' return of 29.81%.

[Image source=Yonhap News]

Samsung Group funds have the largest proportion of Samsung Electronics in their portfolios, so they are greatly influenced by Samsung Electronics' stock price. Typically, Samsung Electronics stocks make up about 25% of the portfolio. The funds' average returns increased as Samsung Electronics closed last year at an all-time high of 81,000 KRW. Over the past year, the return was 45%, and compared to the intraday low in March (42,400 KRW), it rose by 78%.

Among individual funds, the highest return was from the 'Korea Investment KINDEX Samsung Group Stock SW Securities Listed Index Investment Trust,' which achieved a 1-year return of 52%. The 'Samsung KODEX Samsung Group Stock Securities Listed Index Investment Trust' also earned a 43% return. Following were 'Mirae Asset TIGER Samsung Group Securities Listed Index Investment Trust (31%)' and 'Korea Investment Samsung Group Installment Securities Investment Trust (28%)'. The top two funds benefited positively from a higher weighting of Samsung SDI. The 'Korea Investment KINDEX Samsung Group Stock SW ETF' increased Samsung SDI's weighting to 26.25%, higher than Samsung Electronics (24.3%). It maintained weights in Samsung Biologics (13.26%) and Samsung C&T Corporation (7.62%). The 'Samsung KODEX Samsung Group ETF' held Samsung SDI as the second-largest holding at 20.92%. Since the beginning of the year, Samsung SDI surged about 166%, while Samsung Biologics rose 91%, Samsung Electro-Mechanics 42%, and Samsung C&T Corporation 27%, showing significant increases.

However, the proportion of individuals redeeming their shares has gradually increased. Over the past three months, redemption funds from Samsung Group stock funds totaled 197.3 billion KRW, with 253.6 billion KRW withdrawn last month alone.

Market forecasts differ somewhat from individual investors' sentiment. They believe Samsung Group stocks still have sufficient room for further gains. For Samsung Electronics, which holds a large proportion, despite a short-term price surge due to expectations of special dividends, valuation attractiveness remains high. Researcher Yangjae Kim from KTB Investment & Securities said, "With an expected turnaround in semiconductor-centered earnings and a faster rebound in DRAM prices, further upward revisions in earnings are anticipated," adding, "Supply increases due to facility expansions are limited, while front-end demand is rapidly improving."

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