KODEX AI Semiconductor ETF Surpasses 1.2 Trillion Won in Net Assets

Since the beginning of the year, the stock prices of leading domestic semiconductor companies, led by Samsung Electronics and SK hynix, have been soaring. On January 8, Samsung Asset Management announced that the “KODEX AI Semiconductor” ETF, which focuses on investing in domestic AI semiconductor companies, has surpassed 1.2 trillion won in net assets.

KODEX AI Semiconductor is an ETF that invests in leading domestic companies related to AI semiconductors, such as high bandwidth memory (HBM), 5G (fifth-generation) mobile communications, autonomous driving, Internet of Things (IoT), and AI. After surpassing 200 billion won in net assets in May last year, it has grown fivefold in approximately eight months.

With the accelerated advancement of artificial intelligence (AI) technology and the simultaneous growth of the semiconductor industry, the ETF achieved a high return of 138.9% over the past year. Recent returns were also strong, reaching 20.3% over one month, 46.5% over three months, and 98.5% over six months. It is analyzed that robust investment performance has rapidly attracted capital inflows.

KODEX AI Semiconductor underwent a base index remodeling in March. As the AI semiconductor market, which was previously part of the system semiconductor sector, has expanded, the ETF was restructured to focus investments on core AI semiconductor stocks rather than the broader system semiconductor category. As a result, Samsung Electronics and SK hynix, the leading semiconductor stocks, now account for over 40% of the portfolio, actively reflecting the trends in domestic semiconductor stock prices. The ETF has also added leading domestic AI semiconductor companies such as Hanmi Semiconductor, which supplies essential TC bonder equipment for HBM post-processing; ISU Petasys, which provides industrial circuit boards for tensor processing units (TPUs); and Leeno Industrial, which manufactures semiconductor test pins and sockets.

Samsung Asset Management is building a semiconductor ETF lineup that allows various ways to invest in the domestic semiconductor industry, including KODEX AI Semiconductor. This includes “KODEX Semiconductor,” which invests in the entire domestic semiconductor market; “KODEX AI Semiconductor Core Equipment,” which allocates a high proportion to AI semiconductor equipment companies; and “KODEX Semiconductor Leverage,” which provides double leverage exposure to the semiconductor index. These options enable tailored investments according to investor preferences and objectives.

Lee Daehwan, manager at Samsung Asset Management, stated, “The growth of the domestic semiconductor industry driven by AI is just entering its early phase,” adding, “We expect the semiconductor supercycle to continue going forward.” He further explained, “With the rise in HBM and DRAM prices improving profitability, we anticipate an unprecedented earnings rally for domestic semiconductor companies, led by Samsung Electronics and SK hynix.”