Hong Kong-based CSOP Asset Management expanded its Korean stock investments last month with the launch of a KOSPI 200 ETF, following the success of its SK Hynix leverage product that became the world's largest single-stock leverage ETF. The firm's '2X SK Hynix Daily Leverage' ETF, launched in October last year, recorded assets under management of $16.8 billion as of the 23rd of last month, surpassing the 'Tracker Fund of Hong Kong' to become Hong Kong's largest ETF. CSOP attributes the investment expansion to the AI-driven semiconductor cycle and the relatively low valuations of Korean semiconductor companies compared to US competitors.
SK Hynix Leverage ETF Becomes World's Largest Single-Stock Product
CSOP Asset Management's '2X SK Hynix Daily Leverage' ETF reached $16.8 billion (approximately 25.8 trillion won) in assets under management as of the 23rd of last month, according to global asset management industry data. The product, listed on the Hong Kong stock exchange in October last year, became the world's largest single-stock leverage ETF. The ETF also surpassed the 'Tracker Fund of Hong Kong,' launched in 1999 with $16.2 billion in assets, to become Hong Kong's largest ETF.
CSOP Launches First Hong Kong KOSPI 200 ETF
CSOP listed the 'CSOP KOSPI 200' ETF on the Hong Kong stock exchange last month. The product is the only ETF tracking the KOSPI 200 index in the Hong Kong market and the first KOSPI 200 ETF listed in the Asia-Pacific region outside Korea. The ETF applies a full replication method by directly holding KOSPI 200 constituent stocks, with the information technology sector accounting for approximately 66% of the portfolio. Samsung Electronics and SK Hynix alone represent approximately 60% of the holdings, with SK Square, Samsung Electro-Mechanics, and Hyundai Motor among other major constituents.
Korean Semiconductor Firms Remain Undervalued Compared to US Peers
Wi Wang, Chief Investment Officer of CSOP Asset Management, stated that "Samsung Electronics and SK Hynix are among the world's most profitable companies but remain undervalued compared to US peers," adding that "at least from our perspective, they are not yet expensive." CSOP views memory semiconductors as core components in AI datacenter expansion, with Samsung Electronics and SK Hynix positioned as the most direct beneficiaries. The firm noted that while US AI semiconductor companies experienced significant stock price increases, Korean semiconductor firms trade at relatively low valuations despite earnings improvements. CSOP also identified power equipment and energy infrastructure as sectors expected to benefit from AI investment expansion due to rising electricity demand from AI datacenters.
FAQ
What assets under management did the CSOP SK Hynix ETF reach?
The '2X SK Hynix Daily Leverage' ETF recorded assets under management of $16.8 billion (approximately 25.8 trillion won) as of the 23rd of last month, becoming the world's largest single-stock leverage ETF and Hong Kong's largest ETF overall.
What is the composition of the CSOP KOSPI 200 ETF?
The ETF uses a full replication method with the information technology sector accounting for approximately 66% of holdings. Samsung Electronics and SK Hynix combined represent approximately 60% of the portfolio, with other major constituents including SK Square, Samsung Electro-Mechanics, and Hyundai Motor.
