[Provided by KB Asset Management]
[Provided by KB Asset Management]

Market interest in the semiconductor sector has been rising after Samsung Electronics and SK hynix, two of South Korea's leading chipmakers, announced sweeping shareholder return programs in quick succession.

As expectations for record-level shareholder returns and the possibility of improving semiconductor industry conditions converge, investor attention has turned to products that can pursue both the growth potential and shareholder value of the two companies simultaneously.

Against this backdrop, KB Asset Management's RISE Samsung Electronics SK hynix Bond Mixed 50 ETF has emerged as a leading investment alternative.

The RISE Samsung Electronics SK hynix Bond Mixed 50 ETF allocates 25 percent each to Samsung Electronics and SK hynix — the two dominant players in the high-bandwidth memory (HBM) market — and invests the remaining 50 percent in high-quality bonds such as short-term government securities. As of Tuesday, the fund's net assets stood at approximately 4.08 trillion won ($2.95 billion), making it the largest bond-mixed ETF in South Korea.

The fund captures the growth potential of Samsung Electronics and SK hynix while allocating half its assets to bonds, reducing exposure to stock market volatility. Rather than concentrating in individual semiconductor stocks, it lets investors participate in the growth of South Korea's top chipmakers while managing volatility.

The RISE Samsung Electronics SK hynix Bond Mixed 50 ETF has shown relatively stable performance particularly during periods of heightened share price volatility in leading semiconductor stocks, as seen recently.

Over the past 20 trading days, the daily return volatility of Samsung Electronics and SK hynix shares was 7.91 percent and 9.39 percent, respectively, while the ETF's volatility was limited to 4.75 percent — roughly 40 to 50 percent lower than that of the individual stocks. Even as SK hynix shares fell 7.6 percent, the ETF's net asset value rose 1.1 percent over the same period, based on figures as of Thursday.

Bond-mixed ETFs can be held at up to 100 percent in retirement pension accounts — including defined contribution and individual retirement pension accounts — regardless of the 70 percent cap on risky assets, making them a practical option for investors who want exposure to semiconductor growth through pension accounts while keeping portfolio volatility in check.

The RISE Samsung Electronics SK hynix Bond Mixed 50 ETF also carries a low annual management fee of 0.01 percent, keeping long-term investment costs minimal.

"Expectations for a revaluation of Samsung Electronics and SK hynix are growing as improving semiconductor industry conditions align with expanded shareholder returns," said Yuk Dong-hwi, head of the ETF product marketing division at KB Asset Management. "The RISE Samsung Electronics SK hynix Bond Mixed 50 ETF will serve as an effective investment alternative for investors who want exposure to semiconductor growth while reducing the volatility of individual stocks."

KB Asset Management has also been accelerating the launch of new products. On July 28, it released the RISE Kosdaq Covered Call Active ETF, which actively invests in Kosdaq growth stocks while pursuing monthly distributions through a covered call strategy. Rather than simply tracking the Kosdaq 150 index, the fund seeks excess returns through a concentrated portfolio selected by fund managers, using weekly call option premiums on the Kosdaq 150 as the source of monthly distributions.


th5@heraldcorp.com