Hanwha‘s Japanese chip equipment ETF sees 44% yield

[Courtesy of Hanwha Asset Management Co.]

Hanwha Asset Management Co. revealed on Wednesday that its exchange-traded fund (ETF) tracking prominent Japanese semiconductor materials and equipment stocks are yielding 44 percent.

According to Korean financial data tracker FnGuide, the ARIRANG Japan Semiconductor Materials and Equipment Solactive ETF managed by Hanwha Asset Management has achieved a yield of 43.85 percent as of Monday since its launch at the end of August 2023. The return notably surpasses the average yield of the Nikkei 225 index during the same period, which was 20.28 percent, and the ETF yield over the last three months was 33.93 percent.

The Hanwha ETF includes notable Japanese firms such as Tokyo Electron Ltd., Disco Corp., Screen Holdings Co., and Advantest Corp. These companies are members of the “Seven Samurai” club, a reference to the “Magnificent Seven” of U.S. technology giants as dubbed by Goldman Sachs Group Inc. Tokyo Electron, in particular, holds the largest share in the ETF totaling 23 percent.

Citing the recent opening of production facilities in Kumamoto by the world’s leading foundry, Taiwan Semiconductor Manufacturing Co. (TSMC), a Hanwha Asset Management official shared a positive outlook on Japanese chip materials and equipment companies, stating that the Japanese government’s proactive support is providing significant assistance to the Japanese semiconductor industry amid U.S.-China tensions.