As Samsung Electronics and SK hynix undergo a correction, the performance of domestic semiconductor exchange-traded funds (ETFs) has diverged sharply depending on their investment approach. ETFs concentrated in leading chip stocks posted losses of nearly 40% over the past month, while bond-mixed ETFs that also hold government bonds cut their losses to about half, demonstrating a volatility-defense effect.
According to ETF CHECK on the 29th, the product with the lowest return among domestic semiconductor-related ETFs over the past month (June 28 to July 29) was "SOL AI Semiconductor TOP2 Plus" (-46.73%). It was followed by "ACE K Semiconductor TOP2+" (-45.44%) and "KODEX AI Semiconductor TOP2 Plus" (-44.86%), which ranked at the bottom of the returns list. These products hold Samsung Electronics and SK hynix at a combined weight of about 50%, filling the rest with semiconductor value-chain companies, making them directly affected by the sector's stock movements.
By contrast, bond-mixed ETFs significantly reduced their losses. Over the same period, the top performer, KODEX Samsung Electronics Bond Mixed, posted -12.67%, while KODEX Samsung Electronics SK hynix Bond Mixed 50 and RISE Samsung Electronics SK hynix Bond Mixed 50 recorded -22.21% and -22.53%, respectively.
Bond-mixed ETFs are structured to hold both stocks such as Samsung Electronics and SK hynix and government bonds. When the semiconductor sector declines, the relatively stable bonds act as a buffer, which is seen as lowering the volatility of the overall return.
Investor funds have also flowed steadily into bond-mixed ETFs. Over the past month as of the previous day, RISE Samsung Electronics SK hynix Bond Mixed 50 saw net inflows of 318.4 billion won, KODEX Samsung Electronics SK hynix Bond Mixed 50 drew 175.5 billion won, and KIWOOM Samsung Electronics & SK hynix Bond Mixed attracted 49 billion won. This is analyzed as reflecting investment demand to retain the long-term growth potential of the semiconductor sector while reducing short-term volatility.
Even among Samsung Electronics and SK hynix bond-mixed ETFs, there are differences in management style. RISE Samsung Electronics SK hynix Bond Mixed 50, the first Samsung Electronics and SK hynix bond-mixed ETF in Korea, has a low total expense ratio of around 0.01% per year. KODEX Samsung Electronics SK hynix Bond Mixed 50 is structured to pursue capital gains from falling interest rates by holding medium- and short-term government bonds, such as treasury bonds maturing in 2031. By contrast, KIWOOM Samsung Electronics & SK hynix Bond Mixed holds short-term government bonds with maturities of less than one year to reduce interest rate risk and conducts monthly distributions.
Lee Kyung-jun, head of the ETF management division at Kiwoom Asset Management, said, "Semiconductor bond-mixed ETFs have a risk-asset weighting of around 50%, so they can be invested in at 100% even in pension accounts." He added, "They are a suitable investment vehicle for long-term investment because they allow investors to capture the long-term growth potential of the semiconductor industry while reducing volatility."
