Samsung launches 1st global chip ETF

Samsung Asset Management Deputy CEO Bae Jae-kyu

By Kim Yoo-chul

Samsung Asset Management in Hong Kong has officially launched the "Samsung Bloomberg Global Semiconductor ETF," Tuesday.

The product launches came amid expectation that Bae Jae-kyu, its deputy chief executive who is also in charge of the company's ETF business, may be ousted from his position during this year's planned annual reshuffle of its senior executives. Samsung Asset's share in the local ETF market once topped 50 percent, but it has seen its share fall below the 45 percent level.

The ETF product tracks the Bloomberg Global Semiconductor Top 20 Index, which is listed on the Hong Kong Stock Exchange. The ETF sets the listing price at $2, with an initial investment of some $200 for a board lot size of 100 fund units.

The listing's timing came amidst the still-ongoing global semiconductor shortage, with top-tier chip suppliers massively increasing their output levels to resolve the issue. This situation has brought investors' attention to more investments in chip-related stocks.

On the day of the listing, the Samsung Bloomberg Global Semiconductor ETF captured the top-tier chip companies listed in seven markets ― South Korea, Taiwan, Japan, the United States, France, the Netherlands and Germany ― with the highest total revenue coming from the chip business, covering both upstream and downstream along the entire industrial chain.

The ETF product will be traded within Hong Kong's time zone, mainly to facilitate Asian investors investing in top chip companies with quite low thresholds, while diversifying and hedging investment risks.

"Tuesday's Hong Kong ETF listing doesn't have a direct relation to the fate of the senior executives in the already-scheduled annual reshuffle at the company," an official said. Out of the 16 leading asset managers in Korea, only Samsung and NH Amundi have seen their market shares fall this year so far.

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