Hanwha Asset Management's 'Arirang DRAM Semiconductor' Surpasses 80% Return in the Past Year

Hanwha Asset Management announced on the 9th that the recent 1-year return of the exchange-traded fund (ETF) 'ARIRANG Global DRAM Semiconductor iSelect,' which invests in domestic and international DRAM semiconductor companies, recorded 84%. This is the highest performance among semiconductor ETFs listed in Korea, excluding leverage and inverse products.

According to financial information provider FnGuide, the 5-day net asset value (NAV) based recent 1-year return of 'ARIRANG Global DRAM Semiconductor iSelect' was 83.72%. By period, it showed growth rates of 15.61% over the last 1 month, 36.76% over 3 months, and 57.38% over 6 months.

The background of this performance is attributed to the memory semiconductor cycle, including DRAM and NAND flash, entering a full recovery phase. Kim Eun-chong, the responsible fund manager at Hanwha Asset Management, said, "The spot price of DRAM, considered a leading indicator of the semiconductor market, has been on an upward trend for the past few months, showing a full rebound trend after confirming the bottom in the second half of last year."

Micron, the largest memory semiconductor manufacturer in the United States, recently recorded all-time high stock prices by releasing second-quarter results and third-quarter outlook that exceeded market expectations. Samsung Electronics' stock price also recently surpassed 85,000 KRW, reclaiming a market capitalization of 500 trillion KRW, continuing the positive momentum in the memory semiconductor industry.

With the spotlight on artificial intelligence (AI) semiconductors, the demand for high-bandwidth memory (HBM), a core component, has significantly increased, creating an environment where memory semiconductor companies can benefit. HBM is a high value-added, high-performance product that vertically connects multiple DRAM chips to dramatically increase data processing speed.

'ARIRANG Global DRAM Semiconductor iSelect' is an ETF that focuses on investing in the top three DRAM semiconductor companies based on the expectation that demand for DRAM semiconductors for data storage and processing will expand. As of the 8th, the combined weighting of Micron (28.15%), SK Hynix (26.70%), and Samsung Electronics (22.40%) accounts for about 75%. These three companies hold approximately 95% of the global DRAM semiconductor market share.

Additionally, the ETF invests about 20% in total in companies such as ASML (8.74%), the number one manufacturer of EUV (extreme ultraviolet) lithography equipment; Applied Materials (5.51%), the leader in deposition equipment; and Lam Research (4.11%), the leader in etching equipment. The ETF's underlying index is the 'iSelect Global DRAM Semiconductor Index.'

Manager Kim stated, "As demand for AI semiconductors grows, the demand for memory semiconductors such as DRAM and NAND flash is increasing. In particular, HBM demand is expected to continue growing, centered on global big tech companies, and with the full-scale development of Samsung Electronics' next-generation memory technology, 3D DRAM, the DRAM semiconductor industry is expected to have a positive outlook."