xETFs Launches Korea AI Semiconductor ETF to Target Samsung, SK Hynix and AI Chip Ecosystem

xETFs, a New York-based ETF issuer that makes differentiated investment opportunities accessible to investors, is launching the xETFs Korea AI Semiconductor ETF (KSMH).

KSMH is an actively managed ETF designed to provide targeted exposure to Korea’s semiconductor industry, including the country’s industry-leading AI chipmakers, as well as other firms across the full Korean AI semiconductor ecosystem.

“Every AI model runs on memory, and some of the world’s most advanced memory is made in Korea,” said Johnny Wu, Co-founder and CEO of xETFs. “Despite this, the Korean AI semiconductor trade was previously only available through three imperfect options: broad Korean equity funds which cap the amount of exposure to the leading chipmakers, semiconductor-focused ETFs which tend to be dominated by U.S. and Taiwanese exposures, and buying Korean shares directly, which is challenging for an individual investor, as many Korean companies do not have a direct U.S. listing.”

“With KSMH, investors now have a single-ticker solution to access this innovative and growing space which we believe is still in the early stages of its growth cycle,” added Wu.

KSMH is designed to invest in 10 - 25 Korean companies. The two biggest companies in the world for memory, SK Hynix and Samsung, will initially represent approximately 40% of the portfolio.

Outside of the memory leaders, the fund will also provide exposure to leading Korean companies in Materials & Equipment, Manufacturing & Packaging, Substrates & Printed Circuit Boards (PCBs), and Testing.

“AI is driving a new memory cycle, and Korea is home to critical leading memory companies,” continued Wu. “It is also home to a core group of suppliers well-positioned to participate in this ongoing upcycle. KSMH is designed to capture the opportunities found up and down the full Korean semiconductor value chain.”