Shinhan Asset Management's SOL Korean-Style Global Semiconductor Active ETF Surpasses 50 Billion KRW in Net Assets

by Ryu Hyunseok

Published 09 May.2024 09:02(KST)

Shinhan Asset Management announced on the 9th that the net assets of the ‘SOL Korean-style Global Semiconductor Active ETF,’ which diversifies investments in the top global semiconductor stocks, have exceeded 50 billion KRW.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, stated, “The SOL Korean-style Global Semiconductor Active ETF follows a concept of investing in the top global semiconductor value chain stocks at once, offering the advantage of reducing volatility through diversification while benefiting from the balanced growth of both memory and non-memory sectors. As AI semiconductors have begun to receive significant attention and the stock prices of domestic memory semiconductor companies have risen, most period returns have outperformed the U.S. Philadelphia Semiconductor Index,” he explained.

The SOL Korean-style Global Semiconductor Active ETF invests in non-memory semiconductor companies such as Nvidia and memory semiconductor companies including Samsung Electronics and SK Hynix, with a 70:30 ratio, allowing investment across the global semiconductor industry. Since the beginning of the year, its 3-month, 6-month, and 1-year returns are 23.35%, 14.99%, 45%, and 72.99%, respectively, and its cumulative return since listing has reached 83.13%, steadily accumulating excellent profits.

Looking at the top holdings in the portfolio, it includes global AI semiconductor leader Nvidia (9.78%), memory semiconductor leader Samsung Electronics (9.55%), HBM (High Bandwidth Memory) leader SK Hynix (9.33%), lithography equipment leader ASML (8.16%), foundry leader TSMC (6.54%), as well as investments in Broadcom (8.45%), AMD (5.57%), and Qualcomm (3.15%).

The greatest strength of the SOL Korean-style Global Semiconductor Active ETF is its consistent recording of stable returns despite being a semiconductor sector ETF. In particular, it can be used as a representative index of the semiconductor industry that covers both domestic and overseas markets, as well as memory and non-memory sectors, while maintaining top-tier performance. This is clearly demonstrated through comparisons with Korea’s KRX Semiconductor Index and the U.S. Philadelphia Semiconductor Index. From year-to-date performance to 6-month and 1-year results, it has outperformed both the KRX Semiconductor Index and the U.S. Philadelphia Semiconductor Index in both short- and long-term perspectives.

Kim said, “While short-term returns may vary depending on the trends in memory and non-memory sectors and the fluctuations of individual companies, the long-term time series show that the SOL Korean-style Global Semiconductor Active ETF’s returns are consistent.” He added, “The SOL Korean-style Global Semiconductor Active ETF is suitable for investors who want to reduce volatility through global diversification and make a more stable investment in the overall growth of the semiconductor industry.”