Hanwha Asset Management, a Latecomer in Semiconductor ETFs, Ranks First in Returns

'ARIRANG Global DRAM Semiconductor iSelect' Performs Well
Samsung Electronics, ASML, and Other Global DRAM Companies Invest

[Asia Economy Reporter Kwon Jae-hee] Amid the sluggish performance of semiconductor stocks this year, Hanwha Asset Management's 'ARIRANG Global DRAM Semiconductor iSelect,' a latecomer among semiconductor exchange-traded funds (ETFs), has shown relatively strong performance, drawing attention. Its returns are favorable even compared to other semiconductor ETF products.

According to the Korea Exchange on the 14th, Hanwha Asset Management's semiconductor ETF product 'ARIRANG Global DRAM Semiconductor iSelect,' which was listed on September 22, recorded a return of 3.71% from September 22 to December 13. During the same period, Samsung Asset Management's 'KODEX Semiconductor' and Mirae Asset Management's 'TIGER Semiconductor' posted returns of -5.65% and -5.56%, respectively.

ETFs are funds designed to track the price movements and returns of a specific index or asset. They are listed on exchanges and traded like stocks. One advantage is that through diversification, they can offset risks caused by stock price declines compared to investing in individual stocks.

The difference in returns among semiconductor ETFs is due to their product composition. KODEX Semiconductor and TIGER Semiconductor use the KRX Semiconductor Index as their underlying index and invest in domestic semiconductor-related companies excluding Samsung Electronics. Samsung Electronics is classified as a 'hardware-related stock' and is excluded from the semiconductor index.

In contrast, ARIRANG Global DRAM Semiconductor iSelect focuses on investing in the DRAM semiconductor industry and consists solely of companies related to DRAM. Samsung Electronics, SK Hynix, and Micron Technology, which hold the top 1 to 3 shares of the global DRAM market, account for about 75% of the fund. Additionally, it invests in companies producing DRAM equipment and components such as ASML and Applied Materials. DRAM (Dynamic Random Access Memory) is a type of memory semiconductor that stores and transmits data in IT devices like computers and smartphones. Demand for DRAM is increasing, especially in autonomous vehicles, artificial intelligence (AI), the Internet of Things (IoT), and cloud computing.

Kim Sung-hoon, head of the ETF business division at Hanwha Asset Management, said, "Unlike other semiconductor ETF products, ARIRANG Global DRAM Semiconductor iSelect focuses intensively on DRAM-related companies. Although the current market situation is not favorable, since DRAM is an essential part of IT products, we expect explosive growth once the upward cycle returns after the first half of next year."

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