Understanding Semiconductor Industry Indices
The NYSE Semiconductor Index produced and published by ICE Data Indices, LLC consists of the top 30 semiconductor companies listed on the US stock market, classified under the ICE Uniform Sector Classification. This index is calculated using a modified market capitalization weighting method.
Calculation Method: Companies listed on US exchanges or trading as ADRs with over 50% revenue from semiconductor or semiconductor equipment-related businesses are included in the universe. Market capitalization and daily average trading volume within the universe are considered in the calculation of the semiconductor industry index.
Summary in bullet points:
- ICE Data Indices, LLC produces the NYSE Semiconductor Index.
- The index comprises the top 30 semiconductor companies in the US stock market.
- Companies are selected based on their revenue from semiconductor-related activities.
- The index is calculated using a modified market capitalization weighting method.
To understand the Semiconductor Industry Index, 25 stocks are selected. The composition weighting is determined by market capitalization, with a maximum limit of 20%. Lets first look at the underlying index that each domestic US semiconductor ETF tracks.
When examining basic product information, it is evident that the market cap of traditional TIGER US Philadelphia Semiconductor NASDAQ ETF exceeds 2 trillion, with the highest trading volume. In terms of price per share, the recently listed SOL US AI Semiconductor Chipmaker ETF appears to be the most affordable. Considering the tracking error and deviation rate, it seems that all five ETFs are effectively tracking the underlying index without significant issues.
Summary:
- Selection of 25 stocks to comprehend the Semiconductor Industry Index
- Composition weighting based on market capitalization, with a 20% cap
- Analysis of US semiconductor ETFs reveals strong tracking of the underlying index
Investing in Semiconductors: Key Considerations
Semiconductors have long been a cornerstone of almost every industry, earning them the nickname rice of the industry. While they were predominantly memory-based in the past, advancements in technology, particularly in AI, have elevated their importance as a core component. Although I was late to reinitiate my study on investments at the time, I managed to invest in KODEX US SemiconductorMV ETF and TIGER US Philadelphia Semiconductor NASDAQ ETF through my personal pension savings fund and IRP account with a modest allocation. While I have not realized profits, I have been able to achieve decent returns numerically.
Previously, I published a comparison article on three domestically listed US semiconductor ETFs through a blog post. From that point onward, the importance of semiconductor investments has been a focal point.
Summary:
- Semiconductors are vital across industries.
- Technological advancements, especially in AI, have increased their significance.
- Investing in semiconductor ETFs like KODEX and TIGER has yielded favorable results.
- Comparative analysis of domestically listed US semiconductor ETFs was conducted.
| ETF Name | Exchange | Performance |
|---|---|---|
| KODEX US SemiconductorMV ETF | KRX | Stable |
| TIGER US Philadelphia Semiconductor NASDAQ ETF | NYSE | Positive |
If you had focused your investments in US semiconductor ETFs through tax-efficient accounts such as IRPs and ISAs, you would have likely achieved significant returns by now. I hope this article has provided you with insights into investing. Thank you sincerely for reading today.
As the importance of non-memory semiconductors in the era of the Fourth Industrial Revolution continues to grow, the attractiveness of investing in related companies is increasing. However, considering the volatility of the industry, it seems advisable to take a medium to long-term perspective when approaching investments. It is also important to determine if this ETF aligns with your investment style, as it focuses on capital gains rather than dividends.
Summary:
- Investing in KBSTAR Non-memory Semiconductor Active ETF
- Focus on growth potential of domestic non-memory semiconductor companies for outperformance against benchmarks
In conclusion, we have examined the KBSTAR Non-memory Semiconductor Active ETF, which aims to achieve excess returns by selectively investing in high-growth potential domestic non-memory semiconductor companies.
The Sustainable Growth Potential of Non-Memory Semiconductors
Recent Semiconductor Market Correction: Despite a temporary adjustment in the semiconductor market, the long-term growth trajectory of non-memory semiconductors is expected to persist.
Factors Driving Growth: Expansion of new businesses related to the Fourth Industrial Revolution is anticipated to steadily increase demand for non-memory semiconductors.
Monitoring Volatility: It is crucial to carefully monitor fluctuations in accordance with the industry cycle to ensure sustainable growth potential of non-memory semiconductors.
Summary:
- Temporary market corrections do not hinder the sustained growth outlook for non-memory semiconductors.
- Emerging Fourth Industrial Revolution businesses are driving consistent demand for non-memory semiconductors.
- Vigilant monitoring of industry cycles is necessary to capitalize on sustainable growth opportunities.
The potential for sustainable growth in the non-memory semiconductor industry seems to be promising. KBSTAR Non-Memory Semiconductor Active ETF has consistently shown excellent performance since its listing. The high growth trajectory of the non-memory semiconductor industry and the strategic selection of stocks by the fund manager are believed to be the main drivers of this success. The dividend payment history for the past 3 years is as follows:
– Year 1: $X
– Year 2: $Y
– Year 3: $Z
In summary, the sustainable growth potential of non-memory semiconductors is highlighted by the strong performance of KBSTAR Non-Memory Semiconductor Active ETF.
| Year | Dividend Payment |
|---|---|
| 1 | $X |
| 2 | $Y |
| 3 | $Z |
Dividend Structure and Profit Strategy of Semiconductor ETF
This ETF distributes dividends on a quarterly basis in 1, 4, 7, and 10 of each month. As of April 29, 2024, a dividend of 40 won per share was paid out. On an annual basis, the total dividend payout amounts to 40 won, resulting in a dividend yield of approximately 0.28%. The strategy aims to achieve excess performance compared to the benchmark index. Recent returns indicate that this strategy is proving to be effective.
The ETF does not strictly adhere to the underlying index but adopts an active management approach by adjusting the investment weightings of individual stocks. It increases the allocation to companies showing significant growth potential within the semiconductor industry, while reducing the weighting for underperforming stocks. Furthermore, Samsung Electronics is a key component of its holdings, ensuring stability and security.
Summary:
– Quarterly dividend distribution with a recent payout of 40 won per share.
– Aiming for excess performance compared to the benchmark index.
– Active management strategy adjusting investment weightings based on growth potential.
– Samsung Electronics plays a crucial role in ensuring stability and security.The KBSTAR Non-Memory Semiconductor Active ETF is managed with the iSelect Non-Memory Semiconductor Index as its benchmark index. This index consists of companies with high competitiveness and growth potential in the non-memory semiconductor industry. The top 10 holdings of the KBSTAR Non-Memory Semiconductor Active ETF are as follows. This ETF invests in non-memory semiconductor-related companies listed on the domestic stock market. It has a market capitalization of 2,942 billion Korean won, with 20,680,000 shares outstanding. The 52-week high and low prices are 14,920 won and 8,140 won respectively. It was listed on June 10, 2021, with a fund fee of around 0.5% per year to cover the costs of active management conducted by KB Asset Management.
Summary:
- ETF Name: KBSTAR Non-Memory Semiconductor Active ETF
- Benchmark Index: iSelect Non-Memory Semiconductor Index
- Market Capitalization: 2,942 billion Korean won
- Shares Outstanding: 20,680,000
- 52-Week High: 14,920 won
- 52-Week Low: 8,140 won
- Listed Date: June 10, 2021
- Fund Fee: 0.5% per year
- Managed by: KB Asset Management
| Company Name | Ticker Symbol | Weight (%) |
|---|---|---|
| Company A | A123 | 10 |
| Company B | B456 | 8 |
| Company C | C789 | 6 |
| Company D | D012 | 5 |
| Company E | E345 | 4 |
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