Hanwha Asset Management Launches Korea's First Global DRAM Semiconductor Specialized ETF

Kim Sung-hoon, Head of ETF Business Division at Hanwha Asset Management. / Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Junho Hwang] Hanwha Asset Management on the 22nd listed the country's first exchange-traded fund (ETF) focused on investing in the DRAM semiconductor industry, called 'ARIRANG Global DRAM Semiconductor Select,' on the Korea Exchange.

This ETF targets 10 stocks including DRAM manufacturing companies and companies producing equipment, materials, and components used in DRAM semiconductor production. Notably, Samsung Electronics, SK Hynix, and Micron Technology, which hold the top 1 to 3 global market shares in DRAM, account for about 75% of the portfolio. In addition, it also invests in companies producing DRAM equipment and components.

DRAM (Dynamic Random Access Memory) is a type of memory semiconductor that stores and transmits data in IT devices such as computers and smartphones. Due to its fast data read and write speeds, it is used as an essential memory in IT devices. With the growth of future advanced industries such as autonomous vehicles, artificial intelligence, the Internet of Things, and cloud computing, the demand for DRAM, a crucial component for storing and processing vast amounts of data, is also expected to increase.

Kim Seong-hoon, head of the ETF business division at Hanwha Asset Management, stated, "The memory semiconductor industry, which includes DRAM, is a cyclical industry with periodic market cycles, but it grows steadily upward in the long term. According to market forecasts, many view the fourth quarter of this year to the first quarter of next year as the bottom of the DRAM price cycle, meaning the lowest point in the DRAM cycle. Therefore, we believe the second half of this year will provide the optimal timing for investors to invest in DRAM semiconductors."

Meanwhile, Hanwha Asset Management has shown an active approach in the ETF market by launching 13 ETFs this year alone. In the second half of the year, it plans to expand investors' choices by introducing various product lineups, including the ‘ARIRANG Apple Bond Mixed ETF,’ which invests in Apple, the global symbol of innovation, as a single stock.

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