Samsung Asset Management KODEX Semiconductor Surpasses 300 Billion KRW in Net Assets

Samsung Asset Management announced on the 10th that the KODEX Semiconductor ETF, which invests broadly in the domestic semiconductor industry, has surpassed 300 billion KRW in net assets, reaching 315.2 billion KRW.

KODEX Semiconductor is an ETF that has shown steady growth since its listing in 2006, during the early days of the domestic ETF market, and is the largest product in Korea investing in key related stocks leading the domestic semiconductor industry. Its underlying index tracks the KRX Semiconductor Index, which is composed of representative domestic semiconductor companies weighted by market capitalization.

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As the KRX Semiconductor Index recently outperformed major overseas semiconductor indices and showed favorable performance, the KODEX Semiconductor ETF recorded a 1-month return of 5.7%. (Based on NAV as of April 6, 2023, Korea Exchange) During the same period, the U.S. Philadelphia Semiconductor Index posted a 1.9% return, and the MVIS U.S. Listed Semiconductor 25 Index, tracked by the largest U.S. semiconductor ETF, the SMH ETF (VanEck Semiconductor ETF), recorded a 3.2% return.

After a sluggish performance last year, the semiconductor sector has entered an overall upward trend this year, reflecting expectations of improved market conditions. In particular, the rise in KODEX Semiconductor’s returns is largely attributed to the sharp increase in Samsung Electronics’ stock price. With growing interest from individual investors, net individual purchases over the past month amounted to approximately 17.8 billion KRW, the highest among the 16 semiconductor ETFs listed domestically. (As of April 7, 2023, Korea Exchange)

Not only KODEX Semiconductor but also semiconductor sector ETFs in general are showing strong performance. KODEX Fn System Semiconductor, which was listed last year, recorded a 1-month return of 14.4%.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, stated, “As the KRX Semiconductor Index surpassed major U.S. semiconductor indices, interest in domestic semiconductor ETFs has increased, and recently, due to the Samsung Electronics effect, rapid capital inflow into KODEX Semiconductor has led to net assets reaching 300 billion KRW. We expect an overall rebound in the semiconductor sector amid ongoing semiconductor production cuts, government policy support related to the K-Chips Act, and the expanding demand from the AI industry.”

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