Market interest in the Samsung Electronics-SK hynix bond-hybrid exchange-traded fund (ETF) first launched by KB Asset Management has heated up, prompting rival asset managers to rush out competing products. Samsung Asset Management, the industry's largest player, as well as mid-sized firms Hana Asset Management and Kiwoom Investment Asset Management have joined the fray, expanding the competitive landscape into a four-way race.
Kiwoom Investment Asset Management is preparing a bond-hybrid ETF that allocates equal weight to Samsung Electronics (005930.KS) and SK hynix (000660.KS), sources in the financial investment industry said Thursday. The firm is refining its product strategy with a target listing date of July 21.
KB Asset Management's "RISE Samsung Electronics SK hynix Bond Hybrid 50 ETF," the first of its kind in Korea when it debuted in February, surpassed 500 billion won in net assets within two weeks of listing. The fund's net assets swelled to 714.7 billion won as of the previous trading day, proving its commercial viability. On the back of this success, KB Asset Management's total net assets grew by 727.6 billion won over the past month (March 3 to April 2), marking the second-fastest growth among all ETF managers after Samsung Active Asset Management (850.9 billion won).
Samsung Asset Management and Hana Asset Management, which announced launch plans ahead of Kiwoom, have recently completed product code registration and entered the final stages of preparation for listing. Samsung Asset Management plans to list the "KODEX Samsung Electronics SK hynix Bond Hybrid 50 ETF" on July 7, with a total expense ratio set at 7 basis points (1 bp = 0.01 percentage point). Hana Asset Management is also targeting a mid-July listing for its "1Q K-Semiconductor TOP2 Bond Hybrid 50 ETF," which similarly allocates 50% to the two semiconductor heavyweights. However, by branding the product under "K-Semiconductor" instead of naming individual stocks, the firm emphasized its positioning as a sector-representative investment vehicle. Hana set its expense ratio at 1 bp, matching KB Asset Management's level, to put price competitiveness front and center.
These moves by asset managers reflect continued optimism around a semiconductor "super cycle," coupled with a strategy to attract investor sentiment through concentrated bets on market-leading stocks, industry observers said. Global investment banks including JP Morgan and Nomura have recently raised their target prices for Samsung Electronics and SK hynix even amid the market correction, placing significant weight on the potential for a sharp rebound. The two stocks are flagship constituents of the Korean equity market, with a combined market capitalization accounting for approximately 38% of the entire KOSPI.
All the products share a common structure: 50% of assets are allocated equally — 25% each — to semiconductor heavyweights Samsung Electronics and SK hynix, while the remaining 50% is invested in bonds to mitigate volatility. Unlike standard equity ETFs, these bond-hybrid products are classified as safe assets within retirement pension accounts, allowing 100% allocation. This means that after filling the 70% risky-asset limit, investors can add these products to push the effective equity exposure of their overall portfolio to the mid-80% range — a "leverage effect" that is further stimulating demand.
Market participants say that as similar products proliferate, detailed strategy design by mid-sized firms will become increasingly important. "Bond-hybrid ETFs are inherently structured to have similar asset allocations," an asset management industry official said. "Mid-sized firms with relatively weaker brand recognition will need to seek differentiation through distribution payout methods and other features."