SOL Semiconductor SoBuJang ETF, Net Assets Increase to 200 Billion Won in Second Half of Year

As major securities firms mention the semiconductor sector as a promising field for the fourth quarter and next year, the ‘SOL Semiconductor SoBuJang Fn ETF,’ the only domestic semiconductor exchange-traded fund (ETF) composed exclusively of high-quality semiconductor materials, parts, and equipment (SoBuJang) companies, is gaining attention. Analysts suggest that not only AI semiconductors and high-bandwidth memory (HBM) related companies, which have surged significantly this year, but also core SoBuJang companies should be closely watched.

According to Shinhan Asset Management on the 20th, the ‘SOL Semiconductor SoBuJang Fn ETF,’ which was listed last April, attracted KRW 203.2 billion in inflows during the second half of the year when semiconductors began to receive full attention, marking the largest increase in net assets among domestic semiconductor ETFs. Since the beginning of the year, individual net purchases also ranked first at KRW 94.5 billion. As of the 16th, the ETF recorded a 35.91% return over the past six months, ranking first in performance as well.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "AI semiconductors and HBM are new themes in the semiconductor field, so we need to pay attention to the entire high-quality semiconductor SoBuJang sector along with basic beneficiaries such as Hanmi Semiconductor and Hana Micron." He added, "Rinogong-yeop, which recently surged to a 52-week high, has newly attracted attention due to its benefits from on-device AI installed in smart devices."

Rinogong-yeop (weekly return 18.96%), Solbrain (8.00%), and TCK (16.38%), which have recently attracted attention with strong stock price increases in the semiconductor sector, were not mentioned as AI semiconductor or HBM-related companies in the market. However, they are receiving significant market attention due to excellent technology, expectations for improved performance, and issues such as new inclusion in the AI theme.

Kim explained, "The SOL Semiconductor SoBuJang Fn ETF maintains a high proportion of HBM-related stocks closely linked to AI semiconductors and constructs its portfolio mainly with companies related to miniaturization processes and materials and parts companies that are expected to gain attention in the future due to HBM expansion." He added, "Since the medium- to long-term outlook for the semiconductor sector is positive, it is necessary to select semiconductor SoBuJang stocks by examining expectations for AI along with technological capabilities and performance in the manufacturing process."

The portfolio of the ‘SOL Semiconductor SoBuJang Fn’ ETF includes domestic AI semiconductor and HBM representative companies such as Hanmi Semiconductor, Hana Micron, EO Technics, and ISC, as well as miniaturization process-related companies like Dongjin Semichem, Solbrain, Wonik IPS, and HPSP, semiconductor parts companies such as Rinogong-yeop and TCK, and materials companies including Solbrain and Hansol Chemical.

Kim added, "Although capital investment in the semiconductor industry has not progressed this year, inventory depletion is underway due to production cuts." He continued, "When market demand recovers, product prices will rise along with corporate profits, and it will be a time when semiconductor SoBuJang companies with high profit leverage will attract attention."