Samsung Asset Management to Remodel 'KODEX AI Semiconductor TOP2 Plus'

KODEX AI Semiconductor, the largest artificial intelligence (AI) semiconductor theme exchange-traded fund (ETF) in Korea, is undergoing a rebranding and remodeling, including a significant increase in the portfolio weights for Samsung Electronics and SK hynix.

On May 13, Samsung Asset Management announced that it will change the name of 'KODEX AI Semiconductor' to 'KODEX AI Semiconductor TOP2 Plus' and overhaul its underlying index methodology. The core of this restructuring is to substantially increase investments in leading stocks such as Samsung Electronics and SK hynix, which drive the market, and to optimize the portfolio around blue-chip stocks.

The most notable change is the increased weighting of Samsung Electronics and SK hynix, the two giants of the Korean semiconductor sector. Previously, each stock was capped at 20% of the portfolio, but the revision will boost their weights to 25% each, accounting for a combined total of 50%. This strategy is intended to directly reflect the performance of the domestic semiconductor market in the ETF’s returns.

The underlying index has also been changed from 'FnGuide AI Semiconductor' to 'FnGuide AI Semiconductor TOP2+'. The investment universe threshold has been raised from a market capitalization of 600 billion won to over 1 trillion won. By excluding highly volatile small-cap stocks and restructuring the lineup to focus on large-cap stocks with verified market dominance, the ETF aims to more stably capture the benefits of global AI industry growth.

In particular, Samsung Electro-Mechanics, a rising leader in semiconductor substrates and multilayer ceramic capacitors (MLCCs), has been newly added to the portfolio through this remodeling. Samsung Electro-Mechanics is recognized as a key player in the AI semiconductor value chain, extending beyond being a mere component manufacturer, and is expected to play a crucial role in generating excess returns for the ETF going forward.

To maximize portfolio efficiency, the number of constituent stocks has been reduced from 24 to a maximum of 15. The 'elite portfolio' now consists of leading domestic semiconductor companies that cover both front-end and back-end processes, including Samsung Electronics, SK hynix, Samsung Electro-Mechanics, Hanmi Semiconductor, ISU Petasys, and Leeno Industrial.

Lee Daehwan, a manager at Samsung Asset Management, stated, "As the Korean semiconductor industry is being reorganized around Samsung Electronics and SK hynix, we remodeled the product to most accurately reflect market trends. With a concentrated investment in the top two stocks and a portfolio composed solely of key players in the semiconductor value chain, this ETF alone enables real concentrated investment in the domestic semiconductor market."

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