Samsung Electronics is facing declining representation in South Korea’s Exchange-Traded Fund (ETF) market. (Image courtesy of Yonhap)
SEOUL, Dec. 3 (Korea Bizwire) – Samsung Electronics is facing declining representation in South Korea’s Exchange-Traded Fund (ETF) market, reflecting growing concerns about its position in the semiconductor industry, particularly regarding its competitive stance in High Bandwidth Memory (HBM) and artificial intelligence (AI) chip supply chains.
According to financial data provider Yonhap Infomax, as of November 28, seven ETFs had removed Samsung Electronics from their portfolios this year (excluding delisted ETFs). The exodus includes both strategic and active ETFs such as KODEX K-Metaverse Active, KODEX Momentum Plus, KODEX Asia AI Semiconductor ex-China Active, and TIGER Global AI Active.
Dividend growth ETFs, including KODEX Dividend Growth, TIGER Dividend Growth, and KODEX Dividend Growth Bond Hybrid, have also eliminated Samsung Electronics from their holdings. This removal was triggered by the Korea Exchange’s decision to exclude Samsung from its KOSPI Dividend Growth 50 Index during its June regular review.
The contrast with rival SK Hynix is particularly striking. While only four ETFs (including new listings) added Samsung Electronics this year – ACE NVIDIA Value Chain Active, HANARO Shareholder Value Growth Korea Active, TIGER MKF Dividend Aristocrats, and Power K-Shareholder Value Active – eight ETFs newly included SK Hynix in their portfolios.
Notably, several new AI semiconductor-themed ETFs launched this year have opted to exclude or minimize Samsung Electronics’ presence. For instance, ACE Global Semiconductor TOP4 Plus SOLACTIVE, which allocates approximately 20% to leading companies in four semiconductor sectors (memory, non-memory, foundry, and equipment), switched its memory sector focus from Samsung Electronics to SK Hynix in August. This resulted in Samsung’s weighting dropping from 18.63% to 3.21%, while SK Hynix’s increased from 0% to 18.95%.
Unicorn Generative AI Small Giant Active ETF, which initially held no SK Hynix shares, has now increased its allocation to 9.33%.
An asset management company representative explained that ETF composition adjustments reflect efforts to align with changing semiconductor industry trends to optimize investment returns.
Kevin Lee (kevinlee@koreabizwire.com)
