Samsung Asset Management Changes Name of 'KODEX Miguk Bandochae' Semiconductor ETF

Samsung Asset Management announced on the 14th that it will change the name of the existing ‘KODEX US Semiconductor MV’ to ‘KODEX US Semiconductor’ ETF. The index name was removed to help investors intuitively understand the product. The management strategy and the underlying index remain unchanged.

KODEX US Semiconductor is a product that invests in leading global semiconductor companies listed in the United States. It comprehensively invests in 25 major US semiconductor companies including GPU, ASIC, CPU, HBM memory, semiconductor equipment, and design software, while also allocating up to 20% in individual stocks to enhance the effect of investing in leading stocks. The ETF has recorded a recent 1-year return of 34.2% and a 3-year return of 120.1%.

KODEX US Semiconductor tracks the same MV Semiconductor Index as SMH (VanEck Semiconductor ETF), the world’s largest semiconductor ETF with assets of 33 trillion KRW. SMH has established itself as the standard for semiconductor investment and the representative semiconductor ETF chosen worldwide, based on differentiated and outstanding performance over 13 years since its listing. It has significantly outpaced SOXX (iShares Semiconductor ETF), which tracks the well-known ICE Semiconductor Index in Korea. SOXQ (Invesco PHLX Semiconductor ETF), which tracks the Philadelphia Semiconductor Index, remains at around 700 billion KRW.

The MV Semiconductor Index recorded returns of 25% for 1 year, 103.1% for 2 years, and 96.7% for 3 years, whereas the Philadelphia Semiconductor Index showed 14% for 1 year, 68.7% for 2 years, and 58.6% for 3 years. The 5-year return also showed the MV Semiconductor Index leading by 72.7 percentage points (P), proving that the return gap widens over the long term, making it more advantageous not only for short-term but also for long-term investments.

Since the semiconductor industry is not a simple theme, it is wise to invest effectively in the entire industry. Reflecting the flow of the semiconductor industry and focusing on leading stocks is most important. The semiconductor industry has passed through the PC era, internet era, mobile era, and cloud era, and has now entered the AI era. Semiconductors are a core resource that enables AI technology. Major companies that have led the recent AI boom are included as core stocks in KODEX US Semiconductor. KODEX US Semiconductor holds 18.6% Nvidia, 12.7% TSMC, and 10% Broadcom in order. Compared to five years ago, Intel (11%) has decreased to 3.8%, while Nvidia (6%) has increased to 18.6%, showing that it naturally evolves in line with market changes.

KODEX US Semiconductor still maintains a low total expense ratio of 0.09% per year. It has a lower cost burden compared to other semiconductor ETFs. Since cost reduction in long-term investment directly affects returns, it is expected to provide higher satisfaction to investors.

Han Dong-hoon, manager at Samsung Asset Management, said, "AI semiconductors are not a new product but a natural flow of the semiconductor industry, and KODEX US Semiconductor ETF is already optimized around AI due to its product characteristics that best reflect trends and leading stocks."

He added, "Through the name change, we aim to help investors intuitively understand the product and strive to become the representative semiconductor product in the Korean market, just as SMH has become the standard for semiconductor investment in the US."