Samsung Asset Management said Tuesday that its KODEX Samsung Electronics SK hynix Bond Mixed 50 exchange-traded fund (ETF) surpassed 500 billion won ($363 million) in assets under management just two weeks after its listing.
According to the Korea Exchange, the product's net assets stood at 559.9 billion won as of the previous day. Rapid inflows from retail investors drove the growth, with cumulative retail net purchases reaching 37.9 billion won since listing.
The KODEX Samsung Electronics SK hynix Bond Mixed 50 is a mixed-asset ETF that concentrates investments in Samsung Electronics (005930.KS) and SK hynix (000660.KS), the two largest semiconductor companies by market capitalization on the Korean stock market, while also incorporating high-grade bonds such as treasury bonds. Analysts attribute the rise in net assets to the strong share performance of both companies, buoyed by recent memory chip price increases and expectations of an industry upturn. The ETF posted a 10.8 percent return during its first two weeks of trading.
The portfolio is structured with a 50-50 split between stocks and bonds. Half of the total assets are invested in Samsung Electronics and SK hynix, with up to 25 percent allocated to each, while the remaining 50 percent is filled with high-grade domestic bonds such as treasury bonds to enhance asset allocation effects. The design seeks capital gains when the semiconductor industry rebounds, while the bond allocation serves as a buffer during market downturns.
The ETF is also highly regarded for retirement investment use. Because it is classified as having a safe-asset ratio of 50 percent or more, it can be held up to 100 percent in personal pension and retirement pension accounts. This allows investors to meet the safe-asset ratio requirement within pension accounts while expanding their exposure to the semiconductor sector.
"The KODEX Samsung Electronics SK hynix Bond Mixed 50 ETF is a product well suited for long-term investment by pension investors, as it invests in semiconductor growth while lowering volatility through the portfolio," said Lim Tae-hyuk, head of the ETF management division and executive director at Samsung Asset Management. "We plan to continue launching various asset-allocation ETF products so that investors can manage their assets stably, receive monthly distributions, and design their cash flows."
