by Ryu Hyunseok
Published 06 Aug.2024 08:40(KST)
Korea Investment Trust Management announced on the 6th that it will conduct asset reallocation (rebalancing) for the ACE Global Semiconductor TOP4 Plus SOLACTIVE Exchange-Traded Fund (ETF). The rebalancing will be implemented based on the closing price on the 7th of this month, and the updated portfolio will be reflected starting from the 8th.
The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF is characterized by classifying the global semiconductor industry into four sectors (△Memory △Non-memory △Foundry △Equipment) and concentrating investment at around 80% in the top company of each sector. It tracks the Solactive Global Semiconductor TOP4 Plus Index, calculated by the German index provider Solactive.
The key point of this rebalancing is the change in the concentrated investment target in the memory semiconductor sector. Due to a methodological change to include the largest Korean listed stock by free market capitalization within the four categories as a concentrated investment target, the weighting of SK Hynix has increased. Based on the classification of industries according to the proportion of sales by category in total sales, Samsung Electronics, a comprehensive semiconductor company, has been excluded from the memory semiconductor sector, reducing its investment weight to about 3%.
SK Hynix is a company specialized in memory semiconductors and held the world’s number one market share (59%) in High Bandwidth Memory (HBM) as of the first quarter of 2024. It also recorded the highest operating profit in the entire memory semiconductor market from the first quarter of 2023 to the first quarter of 2024. Furthermore, SK Hynix has a high correlation with the top companies in the other three sectors, and it is expected to benefit significantly from the growth of the semiconductor industry, where companies with technological monopolies grow together.
The other three sectors continue to include △NVIDIA (Non-memory) △TSMC (Foundry) △ASML (Equipment), each accounting for about 20%. Some stocks are also excluded. Intel is excluded from the portfolio as it does not rank within the top six by free market capitalization in the semiconductor category, excluding the four concentrated investment stocks.
Korea Investment Trust Management will also hold a net purchase event starting from the 8th to commemorate the rebalancing. Investors holding 10 or more shares of the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF are eligible to participate. The participation method is simple: subscribe to the ACE ETF KakaoTalk channel, capture the ETF holding details, and attach it to the event application link.
Winners will be selected by lottery and awarded △SK Hynix Beetle X31 external SSD 1TB (1 person) △SK Hynix Tube T31 stick external SSD 1TB (1 person) △Baskin-Robbins ice cream quarter size (50 people) △Starbucks iced Americano tall size (500 people). Among all participants, the person holding the largest number of shares, the ‘Global Semiconductor ETF Purchase King,’ will be separately selected and awarded a △Dyson Cool Formaldehyde Air Purifier. The event runs until the 22nd of this month.
Kim Seunghyun, head of ETF consulting at Korea Investment Trust Management, said, “This rebalancing was made to reflect the rapidly changing trends in the semiconductor industry,” adding, “The ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF is suitable for investors who want to invest in leading global semiconductor stocks and benefit from AI-driven semiconductor growth.”
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