‘SOL Semiconductor SoBuJang ETF’ Soars on Semiconductor Stock Rebound

Net Assets Surpass 50 Billion KRW Just 15 Days After Listing
Love Calls Continue from Both Individual and Institutional Investors

At the end of April, the first domestic 소재·부품·장비 (SoBuJang, materials, parts, and equipment) company investment ETF ‘SOL Semiconductor SoBuJang Fn’ ETF, which was listed, has begun to attract funds in earnest along with a stock price rebound. With funds flowing in from both individual and institutional investors, its net assets surpassed 50 billion KRW within just fifteen days of listing.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, “Last Friday, the daily increase rate of the SOL Semiconductor SoBuJang Fn ETF exceeded 8%, ranking first in the domestic ETF market. This was because the stock price rise of SoBuJang companies was stronger compared to comprehensive semiconductor companies during the market rebound phase.” He added, “Despite being a latecomer in the domestic semiconductor-related ETF market, the massive inflow of funds in a short period indicates that investors have focused on the differentiated characteristics of this product compared to existing semiconductor ETFs.”

Within the industry, this rapid inflow of funds into domestic semiconductor ETFs is regarded as an unusual phenomenon, contrasting with the recent trends in the ETF market.

Kim said, “We made efforts to reflect the latest semiconductor market trends as much as possible and to compose the portfolio mainly with companies that are practically engaged in the semiconductor business.” He added, “The SOL Semiconductor SoBuJang Fn ETF, which has a portfolio focused on semiconductor SoBuJang companies at the entry phase of a new semiconductor industry cycle, has special investment points compared to existing semiconductor ETFs.”

The constituent stocks of ‘SOL Semiconductor SoBuJang Fn’ include materials companies such as Hansol Chemical and Soulbrain, parts companies such as Lino Industrial, SNS Tech, and Hana Materials, and equipment companies such as Jusung Engineering, Hanmi Semiconductor, and EO Technics. It also broadly includes fabless companies like SFA Semiconductor and LX Semicon. Notably, the portfolio excludes comprehensive semiconductor companies with large market capitalizations such as Samsung Electronics, SK Hynix, and DB HiTek.

Meanwhile, the SOL Semiconductor SoBuJang Fn ETF will conduct its first regular rebalancing two business days after the June futures and options expiration date (scheduled for change on 6/12).

Kim emphasized, “Since the weights of stocks that increased over the six months following the last regular rebalancing in December last year will be adjusted in this June rebalancing based on the underlying index, the impact of fluctuations in specific stocks on the ETF’s returns will be reduced.”

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