[ETF over Stocks] Keywords: "Game, US Semiconductor, Carbon Emission Rights"

ETFs Generating Over 10% Returns This Month Despite KOSPI and Stock Market Slump
Investing in Gaming, Global Semiconductors, and Carbon Emission Credits

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Junho Hwang] As the KOSPI hovers below the 3000 mark this month, more investors are achieving solid returns through Exchange-Traded Funds (ETFs). The key themes among the top-performing ETFs this month are gaming, U.S. semiconductors, and carbon emission permits.

According to the Korea Exchange on the 15th, the highest-yielding ETF from the beginning of this month through the 12th is HANARO Fn K-Game, which has posted a 17.16% return. This ETF primarily invests in stocks such as Krafton (14.43%), Pearl Abyss (9.89%), NCSoft (10.33%, hitting the daily limit on the 11th), and Kakao Games (10.23%). These stocks have seen significant price movements recently due to growing expectations around Non-Fungible Tokens (NFTs) and the metaverse. Other ETFs investing in these stocks, such as TIGER K-Game (16.60%), KODEX Game Industry (15.87%), and KBSTAR Game Theme (15.25%), have also achieved high returns. Researcher Jongwon Lee from Sangsangin Securities analyzed, "The integration of NFTs and P2E (Play to Earn) hinges on effectively balancing the game so that players can realistically use various in-game assets like characters and items."

ETFs investing in U.S. semiconductors are also recording returns above 10%. Products like TIGER U.S. Philadelphia Semiconductor Nasdaq (12.13%) and KODEX U.S. Semiconductor MV (11.13%) fall into this category. These ETFs invest in companies such as TSMC and Nvidia, and their returns have increased as stock prices rose following strong recent earnings from these holdings.

Carbon emission permit ETFs are showing strength as well. Representative products include HANARO Global Carbon Emission Permit Futures (10.59%) and SOL Global Carbon Emission Permit Futures (9.43%). Kim Junghyun, head of the ETF Management Center at Shinhan Asset Management, stated, "Over the past week, amid growing uncertainty about interest rate hikes by central banks including the U.S., the proactive agreement stance between the U.S. and China at the United Nations Framework Convention on Climate Change Conference of the Parties (COP26) appears to have positively influenced the rise in carbon emission permit prices."