Hanwha Asset Management ARIRANG Japan Semiconductor Materials and Components, Semiconductor ETF Returns Rank 1st

Hanwha Asset Management announced on the 7th that the "ARIRANG Japan Semiconductor Materials and Equipment Solactive ETF" rose 8.18% over the past three months as of the 1st, recording the highest return among domestic semiconductor-related ETFs (Exchange-Traded Funds). The memory semiconductor industry, which had been weak for some time, has shifted to a recovery phase, and it appears that the Japanese semiconductor materials and equipment industry has also benefited.

According to Hanwha Asset Management on that day, the stock price of Tokyo Electron, a major component of this ETF, rose 11.27% over the past three months. Shin-Etsu Chemical and Disco also increased by 11.93% and 12.66%, respectively. The ETF was first listed domestically on August 31 and invests in 20 representative companies related to semiconductor materials, parts, and equipment on the Tokyo Stock Exchange. The major components (weightings) are ▶Tokyo Electron (20.47%) ▶Shin-Etsu Chemical (20.39%) ▶Hoya (15.83%) ▶Advantest (9.41%) ▶Disco (7.84%) ▶Lasertec (7.10%), among others. The underlying index is the 'Solactive Japan Semiconductor Materials and Equipment Index,' and the total expense ratio is 0.50% per annum.

As a currency-exposed ETF designed to allow investors to benefit from foreign exchange gains if the yen appreciates, it is also evaluated as meeting domestic investment demand for the Japanese stock market, which has limited accessibility due to high trading units of 100 shares or more.

Japan has traditionally held a high market share and technological monopoly in the semiconductor materials and equipment sector. Along with being regarded as a strategic fortress geopolitically and backed by strong government support policies, global semiconductor companies such as Samsung Electronics, TSMC, and Micron have made local investments. This has increased the likelihood of direct supply from Japanese semiconductor materials and equipment companies, and the growth potential of related companies is expected to expand further in the future.

Kim Seong-hoon, Head of the ETF Industry Division at Hanwha Asset Management, said, "Japan fosters the semiconductor industry led by the government based on its geopolitical strengths. Due to relatively low valuations and the Bank of Japan’s ultra-loose monetary policy, investments from around the world are pouring in." He added, "Japan is expected to continuously maintain global superiority in the semiconductor materials and equipment field with its high technological capabilities, and since investors can simultaneously benefit from foreign exchange gains when the yen appreciates, investment in the Japanese semiconductor industry will be effective from a long-term perspective."

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