With interest growing in how to invest cash gifts received during the Chuseok holiday, fund managers are recommending exchange-traded funds tied to semiconductors and dividend-paying stocks. Expanding artificial intelligence investment has raised growth expectations for the chip sector, while dividend products offer steady cash flow even in volatile markets.
Semiconductors and dividends were the key themes among the holiday investment products recommended to The Seoul Economic Daily on the 23rd by Korea's five largest asset managers — Samsung, Mirae Asset, KB, Korea Investment Management and Shinhan. The recommendations rest on the view that chip-related ETFs are worth holding for the long term, given the structural rise in demand from the spread of AI.
Samsung Asset Management recommended RISE Global AI NAND Memory Semiconductor and SOL Semiconductor Front-End Process. The first invests in core companies across the global NAND memory value chain, including Samsung Electronics, SK hynix, Micron Technology and SanDisk, while the second targets domestic front-end chip manufacturers. "As AI spreads, demand for data storage is rising, and the high-bandwidth flash market will expand along with it," said Kim Do-hyung, head of the ETF consulting division at Samsung Asset Management. "If surging demand for generative AI prompts large-scale upstream investment by major Korean chipmakers, core front-end companies stand to benefit from the spillover."
Mirae Asset Global Investments and Shinhan Asset Management recommended HANARO US AI Memory Semiconductor TOP4+ and KODEX US CPU Semiconductor TOP10, respectively. HANARO US AI Memory Semiconductor TOP4+ concentrates about 65% of its holdings in four U.S. memory and storage companies, including Micron Technology. KODEX US CPU Semiconductor TOP10, which invests in 10 U.S.-listed central processing unit and chip companies including Intel, is expected to see share prices rebound over the long term on growing demand for AI CPUs. KB Asset Management recommended KODEX AI Semiconductor TOP2 Plus, which invests in core value-chain names such as Samsung Electronics, SK hynix, SK Square and Samsung Electro-Mechanics.
The steady upward trajectory of AI chip ETFs also factored into the recommendations. According to Koscom's ETF CHECK, SOL Semiconductor Front-End Process and KODEX US CPU Semiconductor TOP10 posted double-digit gains of 20.63% and 23.93%, respectively, over the past month from Aug. 22 to Sept. 23.
Dividend ETFs drew concentrated recommendations for their ability to secure stable long-term cash flow while weathering high interest rates and market volatility. Three of the five firms — Samsung, Mirae Asset and KB — recommended ACE US Dividend Quality, which invests in blue-chip U.S. companies that steadily raise dividends and deliver consistent earnings. "Under a high-rate regime, a strategy of investing in stocks with strong dividend growth and clear earnings visibility is more effective than in names highly sensitive to interest rates," said Yook Dong-hwi, head of ETF product marketing at KB Asset Management. From a similar perspective, Mirae Asset Global Investments also put forward PLUS High Dividend Stocks, which invests in the 30 names with the highest expected dividend yields among the 200 largest stocks by market value on the main board. "Investment demand for dividend stocks could build ahead of the year-end dividend season," said Lee Jung-hwan, head of the strategic ETF management division at Mirae Asset Global Investments.
A range of other products, including K-beauty, AI infrastructure and dollar bonds, were also offered as alternatives. Korea Investment Management recommended TIGER Cosmetics, which concentrates its holdings in domestic cosmetics companies such as Cosmax. "K-beauty exports continue to grow in overseas markets including the United States," said Nam Yong-soo, head of the ETF division at Korea Investment Management.
Among AI infrastructure products, KODEX US AI Optical Communication Network and HANARO Power Equipment Investment were cited as promising. KODEX US AI Optical Communication Network, recommended by Korea Investment Management, concentrates its holdings in global optical communications companies with advanced technology, such as Lumentum. The pick reflects expectations that demand for optical communications technology will rise as AI models grow more sophisticated and data centers scale up. On HANARO Power Equipment Investment, Kim Jung-hyun, head of the ETF business group at Shinhan Asset Management, said, "Expanding U.S. investment in nuclear power and restrictions on Chinese power equipment are expected to benefit Korean nuclear and power equipment companies." Kim also suggested ACE US Dollar Short-Term Bond Active, which allows investors to secure dollar assets while the won is strong and to reduce portfolio volatility through short-duration bonds. Kim added that DS KOSDAQ Active, which uses an active strategy to concentrate holdings in KOSDAQ-listed semiconductor materials, components and equipment companies, is also worth a look.
