Shinhan Asset Management's 'SOL AI Semiconductor SoBuJang ETF' Surpasses 40% Return

Shinhan Asset Management announced on the 29th that the cumulative return of the ‘SOL AI Semiconductor Materials and Components Listed Index Fund (ETF)’ has exceeded 40% since its listing.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “The main trend in the domestic stock market last year was centered on secondary batteries in the first half and semiconductors in the second half. From that time, major domestic semiconductor materials and components companies began to receive full attention as artificial intelligence (AI) semiconductor companies.” He added, “Leading the pack is Hanmi Semiconductor, the top company in TC bonder market share within SK Hynix, which holds the number one position in the HBM market share. Stocks of companies such as HPSP, the exclusive company for high-pressure hydrogen annealing, and Rino Industrial, a representative beneficiary company of on-device AI smartphones, showed good performance.”

Meanwhile, Shinhan Asset Management will rename the existing ‘SOL Semiconductor Materials and Components Fn ETF’ to ‘SOL AI Semiconductor Materials and Components ETF’ to clarify the product’s investment concept and enhance the convenience of investment decisions. Kim emphasized, “We changed the ETF name along with the underlying index to make the concept of investing in domestic semiconductor materials and components companies recognized for AI semiconductors more intuitive and clear, thereby improving investors’ convenience in making investment decisions.”

The ‘SOL AI Semiconductor Materials and Components ETF’ is the first domestic ETF composed solely of domestic semiconductor materials and components companies and was the top-ranked AI semiconductor ETF in net purchases by individuals in the second half of 2023. Since its listing, individual investors have purchased 76 billion KRW, and inflows from bank customers have also ranked among the highest. In less than a year since its listing, it has become the representative ETF for AI semiconductor investment. As of the 27th, its total net assets amount to 355.8 billion KRW, the largest among domestic AI semiconductor ETFs.

Looking at the main constituent stocks of the ‘SOL Semiconductor Materials and Components Fn’ ETF, it includes domestic AI semiconductor and HBM representative companies such as Hanmi Semiconductor, Hana Micron, EO Technics, ISC, and SNS Tech. It also covers semiconductor material companies such as Dongjin Semichem, HPSP, Rino Industrial, Lake Materials, Solbrain, Hansol Chemical, Wonik IPS, and Daeduck Electronics, along with companies related to miniaturization processes.

In terms of semiconductor market technology trends, companies related to HBM account for about 59%, and companies related to miniaturization processes account for about 34%. By value chain classification, materials account for about 21%, components about 15%, equipment about 48%, and others about 16%.

Kim said, “While the SOL AI Semiconductor Materials and Components ETF subdivides the semiconductor value chain, the SOL Semiconductor Front-end Process and SOL Semiconductor Back-end Process ETFs, which were listed on the 14th, are semiconductor ETFs that further compress the portfolio by subdividing by process.” He emphasized, “We plan to further strengthen the semiconductor ETF lineup by launching a global AI semiconductor ETF within the first half of the year.”

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