A U.S. quantum computing-themed exchange-traded fund topped domestic ETF returns this year. On average, domestic equity ETFs focusing on nuclear power, defense, and semiconductors outperformed foreign equity ETFs by more than four times.
SOL US Quantum Computing TOP10 ETF, managed by Shinhan Asset Management, recorded a return of 188.30% in 2025, ranking first among domestically listed ETFs excluding leveraged products, according to Korea Exchange data released Monday. The fund's strategy of maintaining high weightings in Rigetti Computing and D-Wave Quantum from its early launch paid off.
"This year, the Trump administration proposed legislation such as the 'Quantum Sandbox' to foster the quantum computing industry, and interest rate cuts had a positive effect on companies requiring large-scale financing," said Kim Jung-hyun, head of Shinhan Asset Management's ETF business division.
HANARO Nuclear Power iSelect ETF, which invests across Korea's nuclear power industry, ranked second with an annual return of 177.84%. Global nuclear power expansion policies driven by rising AI electricity demand, combined with a revaluation of Korea's nuclear power industry, sent related stock prices surging. Korea Investment Management's ACE Nuclear Power TOP10 ETF also recorded returns exceeding 140%, landing in the top 10.
PLUS K-Defense ETF, which invests in domestic defense companies, ranked third with a return of 177.81%. The prolonged Russia-Ukraine war and spreading geopolitical risks in the Middle East have structurally expanded defense industry demand. TIGER K-Defense & Space ETF, another defense-themed product, recorded returns reaching 160%.
Semiconductor themes directly reflecting the AI investment cycle also stood out. PLUS Global HBM Semiconductor ETF, which focuses on high-bandwidth memory-related companies among major domestic and foreign semiconductor firms, ranked fourth with an annual return of 171.11%. Hyundai Asset Management's UNICORN SK hynix Value Chain Active ETF, which invests in SK hynix (000660.KS), Korea's leading HBM stock, and its related value chain, achieved returns approaching 150%. Power infrastructure products including KODEX AI Power Core Facilities ETF and HANARO Power Equipment Investment ETF also ranked high, reflecting expectations for policy benefits.
Commodity themes also showed strength this year. HANARO Global Gold Mining Companies ETF, which invests in gold mining companies amid surging gold prices, recorded an annual return of 148.99%. KODEX Silver Futures (H) ETF also recorded returns exceeding 135% on rising silver prices.
Looking at average performance this year, domestic equity ETFs significantly outpaced foreign equity ETFs. According to the exchange, the average return of 401 domestic equity ETFs was 64.8%, nearly four times higher than the 17.2% average return of 365 foreign equity ETFs over the same period. However, bond ETFs underperformed, with both domestic and foreign products recording negative average returns.
