Hantoo Asset Management, ACE Global Semiconductor TOP4 ETF... Nearly 80% Annual Return

Korea Investment Trust Management announced on the 29th that the ACE Global Semiconductor TOP4 Plus SOLACTIVE Exchange-Traded Fund (ETF) recorded the highest one-year return.

According to the Korea Exchange, as of the closing price on the 28th, the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF posted a return of 79.56%, ranking first among domestically listed semiconductor ETFs. This figure overwhelmingly surpasses the average return of 49.89% for semiconductor ETFs listed in Korea during the same period.

This performance is attributed to Nvidia, which continued its stock price rally amid the artificial intelligence (AI) boom by announcing results that exceeded expectations. Additionally, the positive outlook maintained by major global investment banks (IBs) on the semiconductor industry is believed to have been reflected in the stock price, indicating optimistic future growth prospects.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, stated, "As of 2023, Nvidia holds a 98% market share in GPUs for data centers, maintaining superior technology and market share compared to competitors, and this is expected to continue. Ultimately, the semiconductor landscape, starting with Nvidia (fabless), extending to TSMC (foundry), Samsung Electronics (memory), and ASML (equipment), will be further strengthened by AI growth, necessitating new semiconductor ETF investment strategies aligned with this."

The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF is the first product launched after Korea Investment Trust Management rebranded its ETF line to 'ACE' in 2022. The top holdings of the Global Semiconductor TOP4 Plus SOLACTIVE ETF include ▲Nvidia (23.58%), ▲ASML (21.40%), ▲TSMC (20.76%), and ▲Samsung Electronics (14.94%). This reflects the ETF’s focus on major companies representing the four key sectors within the semiconductor industry: ▲memory, ▲non-memory, ▲semiconductor equipment, and ▲foundry.

Individual investors’ interest continues as well. Since the beginning of the year, individual investors have net purchased 35.7 billion KRW worth of the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF. As a result, the ETF surpassed 150 billion KRW in assets under management on the 7th of this month and exceeded 200 billion KRW within 11 trading days. The net asset value is currently estimated at 202.3 billion KRW.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, added, "The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF has steadily grown its net assets since its listing, attracting individual investors through pension accounts and other channels. Recently, Nvidia’s stock price increase has further contributed to its excellent performance."

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