ACE Global Semiconductor TOP4 Plus ETF Surpasses 800 Billion Won in Net Assets

Korea Investment Management announced on January 16 that the net asset value of the ACE Global Semiconductor TOP4 Plus Exchange-Traded Fund (ETF) has surpassed 800 billion won.

According to the Korea Exchange, as of the closing price on January 13, the net asset value of the ACE Global Semiconductor TOP4 Plus ETF was recorded at 801.3 billion won. This achievement comes just about a month after the fund surpassed 700 billion won in net assets in early December last year.

The growth in size of the ACE Global Semiconductor TOP4 Plus ETF is attributed to the continued inflow of funds from individual investors, driven by heightened expectations for the artificial intelligence (AI) semiconductor industry. According to the Korea Exchange, individual investors made net purchases of approximately 25.1 billion won in this ETF over the past month.

High returns are also cited as a reason for the inflow of capital. According to the fund evaluation firm FnGuide, the cumulative return of this product, which was listed on November 15, 2022, stands at 435.91%. The cumulative return over the past year was 97.98%, significantly outperforming the average return of 59.52% for overseas equity ETFs (excluding leveraged products) that include "semiconductor" in their name. The cumulative return over the past three years reached 429.64%.

The ACE Global Semiconductor TOP4 Plus ETF invests more than 80% of its assets, allocating about 20% each to the global leaders in the four key sectors of the semiconductor industry: memory, non-memory, foundry, and semiconductor equipment. The current portfolio allocation is SK Hynix (28.33%), ASML (20.55%), TSMC (17.24%), and NVIDIA (15.55%), thus covering the entire core supply chain of the AI semiconductor market.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "AI has become a massive paradigm shift that is restructuring not just technology but the entire industry and society," and explained, "Semiconductors are the core driving force that has enabled this innovation."

He added, "The ACE Global Semiconductor TOP4 Plus ETF has demonstrated long-term performance by focusing on the top companies in the four key sectors of the semiconductor industry, while also mitigating volatility through diversification across these areas."

Nam emphasized, "As the semiconductor industry is a sector with notable future growth potential, this product could be a good choice for those who want to share in its long-term growth."

The ACE Global Semiconductor TOP4 Plus ETF is a performance-dividend product, and past returns do not guarantee future results. Principal loss may occur depending on management outcomes.