Kiwoom launches 2 new ETFs for chip, battery stocks

[Courtesy of Kiwoom Asset Management]

Kiwoom Asset Management announced on Thursday the launch of two new exchange-traded funds (ETFs) that will invest in South Korean semiconductor and secondary battery companies with a high proportion of sales in North America. The ETFs, named “KOSEF K-Semiconductor North America Supply Chain” and “KOSEF K-Secondary Battery North America Supply Chain,” are set to be listed on the Korea Exchange on July 23rd, 2024.

The ETFs are designed to capitalize on the opportunities arising from the global supply chain reorganization led by the United States, making them the first of their kind to focus on geopolitical factors in approaching investments in the South Korean semiconductor and secondary battery sectors.

One of the selection criteria for the ETFs is for the companies to be among the top 15 that are listed on the Korea Exchange and Kosdaq and have the highest percentage of their total sales from North America. The portfolio weights will be allocated proportionally to the companies’ market capitalization.

The “KOSEF K-Semiconductor North America Supply Chain” ETF includes companies such as SK hynix, HPSP, ISC, TCK, and Neosem. Meanwhile, the “KOSEF K-Secondary Battery North America Supply Chain” ETF features LG Energy Solution, LG Chem, Samsung SDI, EcoPro BM, and POSCO Future M.

“A global supply chain reorganization centered around the United States is continuing to happen. Korea, which is a United States ally, has the opportunity to grow alongside… we expect that the KOSEF North America Supply Chain series will serve as an investment alternative for the K-Semiconductor and K-Secondary Battery sectors, allowing investors to avoid geopolitical risks while maximizing opportunities,” Jeong Seung-in, who heads Kiwoom Asset Management’s ETF business division, said.