Samsung Asset Management's 'KODEX US Semiconductor MV' Surpasses 300 Billion KRW in Net Assets

Samsung Asset Management announced on the 25th that the net assets of KODEX US Semiconductor MV surpassed 300 billion KRW, reaching 311 billion KRW. This came just 17 trading days after surpassing 200 billion KRW on the 27th of last month.

The continued net buying by individual investors is analyzed to be due to KODEX US Semiconductor MV showing top-level performance not only in the short term but also in medium-term returns.

The return of KODEX US Semiconductor MV has ranked among the highest with 33.1% since the beginning of the year and 82.2% over the past year. The 2-year return and medium-term return since inception are 84.2% and 109.5%, respectively, ranking first among all exchange-traded funds (ETFs) excluding leveraged ones, demonstrating top-level performance in both the medium and short term.

The outstanding returns of this product are directly reflected in the performance of its underlying asset, the MV Semiconductor Index. The ‘MV Semiconductor Index’ currently includes Nvidia, which leads the semiconductor industry, with a weighting of 20.7%, showing differentiated performance that significantly outperforms other US semiconductor indices such as the Philadelphia Semiconductor Index (SOX). While the Philadelphia Semiconductor Index recorded returns of 16.9% since the beginning of the year, 59.1% over one year, 72.4% over three years, and 281.9% over five years, the MV Semiconductor Index showed much higher returns of 29.6%, 80.7%, 105.3%, and 361.9% over the same periods.

The ‘MV Semiconductor Index’ is approximately $18.6 billion (about 25 trillion KRW) in size and is the underlying index tracked by SMH (VanEck Semiconductor ETF), the largest US semiconductor ETF with the highest returns. It includes 25 global large-cap semiconductor companies across the semiconductor industry, including fabless, foundry, memory, semiconductor design software and equipment, and next-generation power semiconductors, all listed in the US.

Unlike the Philadelphia Semiconductor Index, which invests less than 8% in a single stock, the MV Semiconductor Index can concentrate up to 20% in core companies. Investment weights in AI semiconductor-related companies such as Nvidia (20.7%), TSMC (12.1%), Broadcom (7.8%), and ASML (5.0%) are relatively higher compared to other underlying indices. Nvidia’s weighting was only around 7% just three years ago, but thanks to this methodology, it has naturally increased to the 20% range recently. This expansion in weighting has resulted in differentiated returns, leading to the evaluation that the ‘MV Semiconductor Index’ best reflects the changes and growth in the semiconductor industry.

Han Dong-hoon, a manager at Samsung Asset Management, said, "Since its listing, KODEX US Semiconductor MV has consistently recorded top returns for nearly three years, expanding its recognition among investors as the ‘new standard for semiconductor investment.’ Since the beginning of this year, the buying momentum from individual investors has continued to increase."