Large-Cap Stocks Followed by Semiconductor Materials and Components Stocks Ready to Rebound

Following the rebound of major semiconductor stocks such as Samsung Electronics and SK Hynix, semiconductor small and mid-cap stocks are expected to continue the momentum, drawing attention to the ‘SOL Semiconductor SoBuJang Fn’ ETF, which specializes in investing in semiconductor materials, parts, and equipment (SoBuJang) stocks.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, “The sharp rise in stock prices driven by Nvidia’s earnings surprise has led to an increase in major domestic semiconductor stocks like Samsung Electronics and SK Hynix, improving overall investor sentiment in the semiconductor sector. As positive outlooks on the semiconductor industry’s recovery spread, the stock price rebound of high-quality semiconductor SoBuJang stocks may become more prominent.”

The SOL Semiconductor SoBuJang Fn ETF is the only domestic ETF that allows concentrated investment in semiconductor SoBuJang stocks, characterized by excluding comprehensive semiconductor companies such as Samsung Electronics and SK Hynix from its portfolio.

Key portfolio components include Hanmi Semiconductor, Daeduck Electronics, Wonik IPS, Soulbrain, Ligno Industrial, Jusung Engineering, and SEMTEK.

Kim emphasized, “As the recovery cycle in the semiconductor sector is expected to proceed centered on large-cap stocks, it is necessary to pay attention to semiconductor materials, parts, and equipment stocks. This is because, at the entry phase of a new cycle in the semiconductor industry, high-quality SoBuJang companies tend to show strong stock price elasticity and steep earnings recovery.”

In fact, major components of the ‘SOL Semiconductor SoBuJang Fn’ such as Hanmi Semiconductor and Daeduck Electronics have recorded strong gains accompanied by high trading volumes during the semiconductor stock rebound phase. Additionally, SNS Tech has risen about 24% in May alone, hitting a 52-week high. Due to the rise of these key stocks, the SOL Semiconductor SoBuJang Fn ETF recorded an unusual daily gain of over 8% on the 19th, marking the highest daily return among domestic ETFs in the semiconductor category.

Kim stated, “The semiconductor manufacturing process is segmented, and various SoBuJang companies are positioned at each stage, making it difficult to approach individual stocks. Since the SOL Semiconductor SoBuJang ETF concentrates investment in 20 high-quality semiconductor SoBuJang stocks, it can serve as an alternative for investing in semiconductor SoBuJang stocks.”

Meanwhile, the SOL Semiconductor SoBuJang Fn ETF, which was listed at the end of April, has attracted attention from both individual and institutional investors, growing its net assets to 83.4 billion KRW within a month of listing?an increase of more than tenfold?and has recorded a return of 12.71% since its launch.

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