SOL Hanguk-style Global Semiconductor Active ETF Surpasses 30% Return

Lowering Volatility with Global Diversified Investment and Recording Steady Returns
Following Nvidia's Surge Early This Year, Samsung Electronics and SK Hynix Stock Prices Expected to Benefit from Rebound

The SOL Korea-Style Global Semiconductor Active ETF, which has reached its first anniversary since listing, continues its high-flying performance in returns. The year-to-date, 6-month, and 1-year returns of the SOL Korea-Style Global Semiconductor Active ETF are recorded at 30.15%, 19.10%, and 8.18%, respectively.

This is thanks to the balanced performance of the top holdings. Following the sharp rise of Nvidia due to expectations for growth in artificial intelligence (AI) technology at the beginning of the year, the stock price rebounds of Samsung Electronics and SK Hynix, triggered by last week's memory production cut announcement, sequentially contributed to the performance.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “The SOL Korea-Style Global Semiconductor Active ETF selectively invests in leading global semiconductor companies, diversifying not only by country but also by memory and non-memory sectors at approximately a 7:3 ratio. The biggest advantage is its structure where holdings take turns generating profits, enabling steady performance.”

Recently, as the semiconductor earnings bottom theory has gained traction, the domestic semiconductor market has rebounded, bringing a positive breeze to the previously stagnant memory semiconductor stock prices. Over the past month, the KRX Semiconductor Index recorded an 11.94% return, the U.S. Philadelphia Semiconductor Index 1.00%, and the SOL Korea-Style Global Semiconductor Active ETF 5.02%.

However, looking at the 1-year returns, the SOL Korea-Style Global Semiconductor Active ETF recorded 8.18%, while the KRX Semiconductor Index posted -17.38%, and the Philadelphia Semiconductor Index 0.8%, showing relatively high volatility in returns. This means that investors in domestic semiconductor ETFs have experienced a rollercoaster ride over the past year.

Kim said, “Short-term returns may vary depending on the trends in memory and non-memory sectors, but over the long term, the SOL Korea-Style Global Semiconductor Active ETF consistently maintains higher performance compared to the domestic semiconductor index and the Philadelphia Semiconductor Index.” He added, “The SOL Korea-Style Global Semiconductor Active ETF is suitable for investors who want to reduce volatility through global diversification and invest more stably in the growth of the semiconductor industry.”

The SOL Korea-Style Global Semiconductor Active ETF is the only domestic semiconductor ETF that allows investment in the world’s top semiconductor value chain companies at once, diversifying across 50 global semiconductor stocks.

Major holdings include Nvidia, the No. 1 external GPU (10.23%), ASML, the No. 1 lithography equipment maker (7.06%), TSMC, the No. 1 foundry (6.98%), Samsung Electronics (5.75%) and SK Hynix (5.41%), the No. 1 and No. 2 memory companies, Intel, the No. 1 CPU maker (3.3%), and Infineon Technologies, the No. 1 automotive semiconductor company (2.61%).

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