Hanwha Asset Management, ARIRANG Japan Semiconductor Materials ETF Returns 44%

Hanwha Asset Management announced on the 28th that the 'ARIRANG Japan Semiconductor Materials & Components Solative' Exchange Traded Fund (ETF) has risen approximately 44% over about six months since its listing. This figure is more than twice the performance of the Nikkei 225, Japan's representative stock index, which rose 20% during the same period.

According to financial information provider FnGuide, the ETF, which invests in leading Japanese semiconductor materials, components, and equipment companies, has increased by 43.85% (based on net asset value as of the 26th) over about six months since its domestic debut on August 31 last year. This outperforms the Nikkei 225's 20.28% rise during the same period. The ETF's recent three-month return is also 33.93%, surpassing the Nikkei 225's 16.68%.

Reflecting this upward trend, Goldman Sachs, the world's largest investment bank, recently compared seven major U.S. big tech companies known as the 'Magnificent 7 (M7)' to seven leading companies driving the Japanese stock market, dubbing them the 'Samurai 7 (S7)'. The seven companies are Toyota Motor Corporation, Mitsubishi, Tokyo Electron, Subaru, Disco, Screen Holdings, and Advantest. Among these, four are Japanese semiconductor materials and components companies (Tokyo Electron, Disco, Screen Holdings, and Advantest). All have recently achieved historic record highs consecutively.

The 'ARIRANG Japan Semiconductor Materials & Components Solative' ETF includes all four Japanese semiconductor materials and components companies identified by Goldman Sachs. Tokyo Electron, which holds the largest weighting at 23%, is one of the world's top four semiconductor equipment manufacturers, specializing in semiconductor front-end process equipment such as etching that carves wafers and deposition that forms films.

Jeon Sang-hoon, manager of the ETF management team at Hanwha Asset Management, stated, "Tokyo Electron plans to supply next-generation etching equipment targeting 'Channel Hole Etching' for NAND above the 400-layer level to customers starting in 2025." He added, "It is expected to capture some market share from Lam Research (LRCX), which currently monopolizes equipment in this field, so future growth is anticipated."