Samsung Asset Management's KODEX U.S. Semiconductor exchange-traded fund has added SK hynix's American depositary receipts to its portfolio, bringing the chipmaker into a leading U.S. semiconductor index about two months after its Nasdaq listing.
Samsung Asset Management said on the 21st that the ETF added SK hynix ADRs, traded under the ticker SKHY, following the September rebalancing of its underlying benchmark, the MVIS US Listed Semiconductor 25 Index. The weighting is about 4.8%.
SK hynix ADRs began trading on the Nasdaq on July 10 of this year. The chipmaker joined the U.S. benchmark chip index roughly two months later.
The index tracked by KODEX U.S. Semiconductor is the same one followed by VanEck's SMH, or VanEck Semiconductor ETF, the largest semiconductor ETF in the U.S. SMH also added SK hynix ADRs at the same weighting in this rebalancing.
SMH holds about $70 billion in net assets, the most among semiconductor ETFs listed in the U.S. That is roughly 1.5 times the size of the second-largest fund, iShares Semiconductor ETF, or SOXX, and about 23 times that of Invesco PHLX Semiconductor ETF, or SOXQ, which tracks the Philadelphia Semiconductor Index.
KODEX U.S. Semiconductor is a domestically listed ETF designed to give won-based exposure to the same portfolio as SMH. It holds 25 global semiconductor companies listed on U.S. exchanges, including Nvidia, TSMC, Broadcom, ASML and Micron. With the addition of SK hynix ADRs, the fund's coverage now extends beyond graphics processing units, application-specific integrated circuits, foundry services and chipmaking equipment to artificial intelligence memory centered on high-bandwidth memory.
"The semiconductor industry that underpins AI is seeing many changes emerge at once amid a huge growth trend," said Han Dong-hoon, a manager at Samsung Asset Management. "Adding SK hynix ADRs proves once again that this is a product that quickly reflects the latest trends and the most representative names."
