ETFs Trim Samsung Electronics and Add Hynix... The 8th Marks a Turning Point for Semiconductor Stock Flows

[Financial News] The rebalancing of holdings and investment weights in semiconductor ETFs on the 8th is expected to generate sell orders worth several hundred billion won in Samsung Electronics and buying demand worth several tens of billions of won each in SK hynix and SK Square.
According to financial investment industry sources on the 6th, major semiconductor products including the Mirae Asset TIGER Fn Semiconductor TOP 10 ETF and the SOL AI Semiconductor TOP2 Plus ETF are among the ETFs due for regular rebalancing this month. As of the 29th of last month, their net assets stood at about 10.15 trillion won and 5.79 trillion won, respectively, with about 16 trillion won invested in the two products alone.
The TIGER Semiconductor TOP10 Covered Call Active ETF, with about 835 billion won in assets, and the Mirae Asset TIGER Semiconductor TOP10 Leverage ETF, with about 652 billion won, are also due for adjustments. Semiconductor-related ETFs, including leveraged and covered-call funds, have about 18.1 trillion won in assets subject to rebalancing. That amounts to 78% of the approximately 23.2 trillion won subject to adjustments across all domestic equity ETFs this month.
Rebalancing involves adjusting an ETF’s holdings and investment weights to align with the index it tracks. Major semiconductor products reflect regular index changes on the first business day of the week after options expiration. With the Hangul Day holiday falling during that period this time, trading ahead of the changes is expected to be concentrated on the 8th.
An asset management industry source said, “This time, even among the same large-cap semiconductor stocks, buying and selling could go in different directions depending on their weights in ETFs. The key is how much of the funds freed up by reducing Samsung Electronics’ weight will move into SK hynix and other semiconductor stocks.”
Samsung Electronics is expected to face sell orders because its weight has exceeded the investment cap in some ETFs. As of the 29th of last month, Samsung Electronics accounted for 27.1% of the Mirae Asset TIGER Fn Semiconductor TOP 10 ETF, 2.1 percentage points above the 25% cap. Some Samsung Electronics shares will have to be sold to bring its weight within the limit during the regular index change. Its weight also slightly exceeded the cap in the Mirae Asset TIGER Semiconductor TOP10 Leverage ETF.
By contrast, SK hynix’s weight is below the cap in most related ETFs. Analysts say some of the proceeds from selling Samsung Electronics shares could go toward additional purchases of SK hynix.
Jeon Gyun, a researcher at Samsung Securities Co., Ltd., said, “Adjusting Samsung Electronics’ weight cap could generate about 200 billion won in sell orders,” and added, “We estimate additional buying demand of about 90 billion won for SK hynix and about 80 billion won for SK Square.”
Last September, Samsung Electronics and SK hynix were both among the stocks slated for weight reductions in the regular revision of the KRX sector indices. Related ETFs lowered the weights of both stocks and increased those of other mid- and large-cap stocks, temporarily amplifying share-price volatility in some names. This time, trades are expected to reduce Samsung Electronics’ weight and increase SK hynix’s, potentially sending the flows for the two stocks in opposite directions.
A securities industry source said, “What matters more than the volume of rebalancing trades itself is how much the market can absorb on the day. If orders pile up near the market close, share-price movements could become more pronounced in the short term.”

[email protected] Choi Doo-sun Reporter