Semiconductor power in ETFs: Samsung Electronics and SK hynix make up 13% of net assets

Samsung Electronics and SK hynix now account for more than 10% of the net assets in the domestic exchange-traded fund (ETF) market. In effect, one out of every ten ETFs holds at least one of these two stocks. As positive views on the two semiconductor leaders continue despite concerns over a prolonged war in the Middle East, asset managers are rushing to launch concentrated products that include both names.
According to the Korea Exchange on the 7th, as of the 3rd, Samsung Electronics was the stock with the largest valuation among domestic equities held by the 1,088 ETFs listed on the Korean stock market.
The value of Samsung Electronics shares held by domestic ETFs reached 29.528 trillion won. This represents 7.8% of the total net assets of the domestic ETF market, which stand at 376.6724 trillion won. SK hynix followed as the second-largest holding, with an ETF valuation of 19.9798 trillion won.
The combined valuation of just these two stocks, Samsung Electronics and SK hynix, came to 49.5079 trillion won, accounting for 13.1% of total ETF net assets. Their combined weight has risen by more than 3 percentage points from 9.75% at the start of the year on January 2.
The surge is seen as the result of intensifying fund flows into market leaders amid improving semiconductor earnings and rising share prices since last year. Driven by the investment boom in artificial intelligence (AI), higher semiconductor prices, and growing shipments of High Bandwidth Memory (HBM), Samsung Electronics announced in a filing that its preliminary consolidated operating profit for the first quarter jumped 775% year-on-year to 5.72 trillion won. Global investment banks such as JPMorgan and Nomura have already raised their target prices for Samsung Electronics and SK hynix, betting on a rebound in the shares even after the market correction following the Middle East conflict.
Even beyond Samsung Electronics and SK hynix, semiconductor stocks are gaining clout in the ETF market. The valuation of HANMI Semiconductor held by domestic ETFs was just 1.1443 trillion won at the start of the year, a 0.38% share. By the 3rd, it had swelled to 3.5578 trillion won, or 0.94%, making it the third-largest holding by value.
As semiconductor stocks wield growing influence in the domestic market, asset managers are focusing on products that concentrate exposure. Among ETFs listed this year, products where Samsung Electronics and SK hynix together account for nearly 50% of total holdings include the SOL AI Semiconductor TOP2 Plus ETF and the RISE Samsung Electronics & SK hynix Bond Mixed 50 ETF. Over the past month, these two products have attracted 245 billion won and 286.2 billion won in inflows, respectively.
In particular, a series of bond-mixed ETFs centered on "Samsung Electronics and SK hynix" are set to debut. These products allocate 25% each to large-cap semiconductor names such as Samsung Electronics and SK hynix, with the remaining 50% invested in bonds to reduce volatility. On this day, Samsung Asset Management listed the KODEX Samsung Electronics & SK hynix 50% Bond Mix ETF, while Hana Asset Management is preparing the 1Q K-Semiconductor TOP2 Bond Hybrid 50 ETF. In both products, the two semiconductor leaders make up close to half of the portfolio. Total fees are set at 7 basis points (bp = 0.01 percentage point) and 1 bp, respectively. Kiwoom Asset Management has also completed product code registration for the KIWOOM Samsung Electronics & SK hynix Bond-Hybrid 50 ETF ahead of its launch.
An official at an asset management firm said, "In the past, demand was centered on passive products that aimed to capture the entire market, but recently, ETF investors are increasingly seeking concentrated strategies that pick only the strongest companies," adding, "There is a growing perception that broadly including noncompetitive firms can lead to a leveling down of returns."
nodelay@fnnews.com Park Ji-yeon Reporter