Kiwoom Asset Management Launches Two KOSEF 'North America Supply Chain' ETFs

Investment Solutions Amid the US-China Hegemony War

Kiwoom Asset Management announced on the 18th that it will launch the ‘KOSEF K-Semiconductor North America Supply Chain’ and ‘KOSEF K-2nd Battery North America Supply Chain’ exchange-traded funds (ETFs) on the 23rd, which invest in domestic semiconductor and secondary battery companies with a high proportion of sales in North America.

With the U.S. presidential election approaching in November and expectations that U.S. protectionism and measures to curb China will intensify, these products seek investment opportunities in the global supply chain restructuring led by the U.S. These ETFs approach domestic semiconductor and secondary battery investments with a focus on geopolitical factors.

‘KOSEF K-Semiconductor North America Supply Chain’ and ‘KOSEF K-2nd Battery North America Supply Chain’ each select 15 stocks listed on the Korea Exchange and KOSDAQ markets within the semiconductor and secondary battery industries, respectively, ranked by the proportion of their North American sales relative to total corporate sales. They are weighted proportionally to their free-float market capitalization. The underlying indices are calculated by the German index provider Solactive. North America includes the U.S., Canada, and Mexico, and North American sales include revenues generated from products produced in North America as well as those exported to the region.

‘KOSEF K-Semiconductor North America Supply Chain’ holds significant weights in leading companies such as SK Hynix, a leader in the high-bandwidth memory (HBM) market; HPSP, an advanced semiconductor front-end equipment company; ISC, a semiconductor test parts company; TCK, a semiconductor materials and parts company; and Neosem, a semiconductor test equipment company. ‘KOSEF K-2nd Battery North America Supply Chain’ invests substantially in leading domestic cell and materials companies such as LG Energy Solution, LG Chem, Samsung SDI, EcoPro BM, and POSCO Future M, and also includes many equipment suppliers.

The U.S. is restructuring the global supply chain centered on itself to strengthen its leadership in the semiconductor and secondary battery industries and to curb China’s growth. This is being done by expanding production bases within the U.S. and strengthening cooperation with neighboring countries and allies. According to Kiwoom Asset Management, companies closely linked to the North American supply chain?that is, those actively producing within North America or well-established in exports to North America?are expected to achieve relatively higher performance.

Jung Sung-in, head of the ETF division at Kiwoom Asset Management, explained, “As the U.S.-China hegemony war, which will reshape the global industrial landscape, intensifies and the U.S. presidential race begins, each candidate’s protectionist stance to rally their support base is expected to strengthen further. A macro approach that seeks profit opportunities within the international political context, beyond individual companies or industries, has become more important than ever.”

Jung added, “In the U.S.-centered global supply chain restructuring, South Korea, as an ally of the U.S., is expected to gain opportunities to grow alongside the U.S. and enjoy the spillover benefits from China’s setbacks. We hope the KOSEF North America Supply Chain series will be an investment alternative for investors that avoids geopolitical risks while maximizing opportunities in K-Semiconductor and K-2nd Battery investments.”

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