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KIM launches Semiconductor ETF Tracking Solactive Index


The increasing demand for computing products and mobile devices, as well as the growing interest in electric cars and home appliances, mainly built on artificial intelligence developments, lead to a vast potential in the semiconductor industry, writes index provider Solactive.

The sector has grown by more than 20 per cent to around USD600 billion in 2021 and is forecast to have an aggregate annual growth from 6 per cent to 8 per cent up to 2030, according to an analysis by McKinsey & Company.

Solactive writes that the document shows that the result is a USD1 trillion industry by the end of the decade. Envisaging this potential, Solactive writes that Korea Investment Management has launched the KIM ACE Solactive Global Semiconductor TOP4 ETF, tracking the Solactive Global Semiconductor Top 4 Plus Index, offering investors a balanced exposure to semiconductor industry based on four major classifications: memory semiconductors, non-memory semiconductors, foundry services, and semiconductor equipment. This index is a representation of securities that have business operations in the global semiconductor industry.

Timo Pfeiffer, Chief Markets Officer at Solactive, says: “Nowadays, semiconductors are already the core of every electric device, from domestic appliances to cars. But if we think about the future, there is more to come. With a growing need for chips to fuel our future smart economy and the new remote working trend, companies that are active in this space are well positioned for growth. We are delighted that KIM perceived the great potential of this future USD1 trillion industry and chose Solactive to this new thematic ETF. We are looking forward to strengthening our partnership.”

Jaehwan Shim, Chief Invesment Officer at KIM, comments: “As an essential technology of future industries, semiconductor is leading the industrial transition worldwide, and we believe that investing in semiconductor industry provides long-term opportunities. We are excited to be working with Solactive to launch KIM ACE Solactive Global Semiconductor TOP 4 ETF, a very efficient access to core companies that derived top revenue from Semiconductor industry directly. The goal of KIM ACE Solactive Global Semiconductor TOP 4 ETF is to capture the performance of the key companies in four major sectors of semiconductor value chain – 1) Memory semiconductors, 2) Non-memory semiconductors, 3) Foundary services, 4) Semiconductor equipment, and its top companies weighted 20 per cent each in the portfolio. With a client-first approach, KIM and Solactive are applying the successful expert-driven ETFs, and beyond this first collaboration, we expect many more innovative products to come from this partnership.”

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