NH-Amundi Asset Management has newly added SK Square to its HANARO Fn K-Semiconductor exchange-traded fund (ETF), which invests in core stocks of Korea's semiconductor industry, the company said Sunday, following its regular June rebalancing.
The ETF tracks the FnGuide K-Semiconductor Index and holds major semiconductor and materials, parts, and equipment stocks, including SK hynix (000660.KS), Samsung Electronics (005930.KS), Samsung Electro-Mechanics, Hanmi Semiconductor, Jusung Engineering, and ISU Petasys. SK Square was newly included in the index after being classified into the semiconductor industry under the FnGuide Industry Classification Standard (FICS) at the end of last month. The weighting of Samsung Electro-Mechanics, previously the largest component, was reduced in accordance with the index methodology.
As of the 18th of this month, the HANARO Fn K-Semiconductor ETF posted a year-to-date return of 301.14%, the highest among Korean equity semiconductor ETFs excluding leveraged products. Its net assets surpassed 4 trillion won at the end of last month and exceeded 5 trillion won on the 17th of this month. NH-Amundi Asset Management believes Korean semiconductor stocks still have ample room for further gains. In particular, the firm expects additional performance from the ETF, citing SK hynix's planned listing of American depositary receipts (ADRs) in the United States and anticipation surrounding the second-quarter earnings season.
"This ETF is a flagship Korean semiconductor product that has consistently demonstrated outstanding performance through a differentiated methodology," said Kim Seung-chul, head of the ETF Investment Division at NH-Amundi Asset Management. "We expect that this rebalancing will allow the fund to respond more effectively to a rapidly changing semiconductor market and become a highly refined product that meets investors' expectations."
