Woori Asset Management’s semiconductor ETF tops returns despite market plunge, gaining 117% over a year

[Financial News] As South Korea’s stock market has fallen more than 20% so far this month, Woori Asset Management’s WON Semiconductor Value Chain Active ETF has posted the highest return among domestic active exchange-traded funds (ETFs).
According to fund evaluator Zeroin on the 27th, the ETF’s one-year return was 117.86% as of the previous day’s closing price, the highest among 257 domestic-listed active ETFs. Its two-year return was also first, at 320.17%, among 190 active ETFs that had been listed for at least two years. Its year-to-date return of 95.45% likewise ranked first among 269 comparable products.
The ETF maintained its lead in returns despite the KOSPI’s recent sharp decline. The KOSPI fell 21.9%, from 7003.74 on the 2nd to 5469.47 on the 26th. On the 15th, it plunged 8% intraday, triggering a Level 1 circuit breaker. The ETF’s one-year returns were 233.89% on the 2nd and 145.53% on the 15th, the highest among active ETFs at both points.
Woori Asset Management said that actively adjusting stock weightings to reflect market conditions had supported the ETF’s performance. It increased its investment in materials, components and equipment companies with technological competitiveness when shares of large-cap semiconductor companies such as Samsung Electronics Co., Ltd. and SK hynix were losing momentum.
Lee Ho-seok, head of Equity Management Team 2 at Woori Asset Management, said, “Selecting stocks by analyzing companies’ fundamentals and technological trends in the semiconductor industry contributed positively to performance not only during market upswings but also during corrections.”
He added, “The earnings outlook for companies benefiting from investment in artificial intelligence (AI) is positive, but foreign investors’ preference for large-cap IT stocks has weakened amid uncertainty over supply and demand, geopolitical risks and interest-rate pressures.” He forecast, “Unless serious geopolitical risks arise, the semiconductor sector will resume its upward trend.”

[email protected] Lee Jeong-hwa Reporter