ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF Ranks First in Two-Year Returns Among Peers

Korea Investment Management announced on July 23 that the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF has recorded the highest two-year return among global semiconductor ETFs listed in Korea.

According to the Korea Exchange, as of July 22, the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF posted a two-year return of 109.54%. This is the highest figure among the 28 global semiconductor ETFs classified by the KOSCOM ETF CHECK standard. The ETF also recorded one-year and six-month returns of 18.36% and 11.40%, respectively, far exceeding the average for similar products (4.28% and 3.00%).

The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF was listed by Korea Investment Management in November 2022. The fund invests across the entire semiconductor industry, dividing it into four segments: system semiconductors, memory semiconductors, foundries, and semiconductor equipment. Its underlying index is the 'Solactive Global Semiconductor TOP4 Plus Index.'

The ETF's portfolio is designed to capture the benefits of growth in the semiconductor market. The AI semiconductor market is characterized by a winner-takes-all structure, where the performance gap among leading companies with technological and financial strength is pronounced. In response, Korea Investment Management allocated approximately 80% of the portfolio to four key stocks. As of the previous day, the top holdings were SK Hynix (21.86%), TSMC (21.85%), Nvidia (21.75%), and ASML (15.41%).

This approach of investing in leading companies in each segment also provides diversification benefits. By including the top company from each segment, the ETF covers the global semiconductor supply chain, including the United States, Taiwan, Korea, and the Netherlands. The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF is the only global semiconductor ETF in Korea that equally includes the four leading semiconductor companies without concentration.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "As the utilization of AI increases, demand for high-performance semiconductors continues to rise. The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF, which focuses on leading companies in each segment, is best positioned to benefit from the growth of the semiconductor market."

He added, "Since its listing, the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF has achieved a cumulative return of over 200%, demonstrating excellent long-term performance. Even after the highly volatile start to the year, it has delivered a return of 17.89%."

Meanwhile, the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF is a performance-based product, and past performance does not guarantee future results. In addition, principal loss may occur depending on the fund's performance.

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