Year-to-date return of 301%

Net assets surpass 5 trillion won

[NH-Amundi Asset Management]
[NH-Amundi Asset Management]

NH-Amundi Asset Management announced Monday it has completed the June regular rebalancing of its HANARO Fn K-Semiconductor ETF, which invests in core domestic semiconductor stocks.

The exchange-traded fund targets 20 key companies in South Korea's semiconductor industry. Its holdings span large-cap names — SK Hynix, Samsung Electronics, SK Square and Samsung Electro-Mechanics — as well as materials, components and equipment firms including Hanmi Semiconductor, Jusung Engineering and Isupetasys.

The headline change in this rebalancing is the addition of SK Square. The ETF tracks the FnGuide K-Semiconductor Index, which selects stocks either classified under the semiconductor sector in FnGuide's industry classification system (FICS) or deriving more than 10 percent of their revenue over the past two fiscal years from semiconductor-related sales. The index is calculated using a float-adjusted market capitalization weighting methodology.

SK Square was added to the index after being reclassified into the semiconductor sector under FICS in late May. The company holds a 20.5 percent stake in SK Hynix and its share price has surged 383.7 percent this year through June 19, the most recent trading day.

The rebalancing also trimmed the weighting of Samsung Electro-Mechanics, previously the fund's largest holding. Samsung Electro-Mechanics' share price had risen sharply since April, pushing its weight in the ETF higher, and the float-adjusted market cap weighting methodology prompted the reduction.

The HANARO Fn K-Semiconductor ETF has continued to post strong results. As of June 18, its year-to-date return stood at 301.14 percent, the highest among domestic equity semiconductor ETFs excluding leveraged products. Its one-month return was 50.89 percent and its three-month return was 131.21 percent. Net assets surpassed 4 trillion won ($2.6 billion) at the end of last month before crossing the 5 trillion won ($3.26 billion) mark on June 17.

"The HANARO Fn K-Semiconductor ETF has consistently demonstrated outstanding performance through a differentiated methodology, making it the representative domestic semiconductor investment product," said Kim Seung-cheol, head of the ETF investment division at NH-Amundi Asset Management. "Through this rebalancing, we expect the fund to respond even more effectively to the rapidly changing semiconductor market and become a more complete product that meets investor expectations."


jiyun@heraldcorp.com