Hanwha Asset Management is preparing to launch a bond-mixed exchange-traded fund (ETF) focused on NAND flash semiconductor companies, targeting SK Hynix and SanDisk with a 50% equity allocation and 50% bond allocation. The move reflects the asset manager's strategy to capture AI infrastructure investment demand expanding beyond high-bandwidth memory (HBM) and DRAM into datacenter NAND storage. Bond-mixed ETFs have gained traction in South Korea's retirement pension market since their classification as 'safe assets' allows investors to allocate up to 100% of retirement accounts to these hybrid products.
Hanwha Asset Management Targets NAND Semiconductor Market with 50-50 Hybrid Structure
The 'PLUS SK Hynix SanDisk Bond Mixed 50' ETF allocates 50% to equities split equally between SK Hynix and SanDisk, with the remaining 50% invested in bonds. According to the financial investment industry on the 20th, Hanwha Asset Management positions the product as a differentiated offering in the bond-mixed ETF category by concentrating on NAND flash memory companies rather than DRAM-focused competitors. The global NAND market currently features competition among SK Hynix, SanDisk, and Kioxia.
Bond-Mixed ETF Market Expands Beyond Memory Chip Giants
The bond-mixed ETF segment in South Korea began with memory semiconductor-focused products and has grown rapidly. The RISE Samsung Electronics SK Hynix Bond Mixed 50 launched in February with 4 trillion won in assets under management, followed by KODEX Samsung Electronics SK Hynix Bond Mixed 50 (1.4 trillion won), 1Q K Semiconductor TOP2 Bond Mixed 50 (200 billion won), and KIWOOM Samsung Electronics & SK Hynix Bond Mixed 50 (200 billion won). Recent launches targeting Hyundai Motor and Kia, as well as US space technology companies, have intensified competition among asset managers.
PLUS Global HBM Semiconductor ETF Increased NAND Exposure in May Rebalancing
Hanwha Asset Management's existing PLUS Global HBM Semiconductor ETF (1.7 trillion won AUM) added SanDisk during its May periodic rebalancing to increase NAND exposure. The decision reflected the view that AI infrastructure investment would expand from GPUs through HBM and server DRAM to datacenter NAND storage. As of the 20th, the ETF's top holdings include Micron (31.16%), SK Hynix (24.73%), Samsung Electronics (20.05%), with SanDisk ranking sixth at 4.53%.
FAQ
What is the allocation structure of Hanwha Asset Management's new NAND-focused ETF?
The PLUS SK Hynix SanDisk Bond Mixed 50 ETF allocates 50% to equities split equally between SK Hynix and SanDisk, with the remaining 50% invested in bonds.
Why are bond-mixed ETFs popular in South Korea's retirement pension market?
Bond-mixed ETFs are classified as 'safe assets' in South Korean retirement pension accounts, allowing investors to allocate up to 100% of their retirement funds to these hybrid products that combine equity and bond exposure.
When did Hanwha Asset Management add SanDisk to its PLUS Global HBM Semiconductor ETF?
Hanwha Asset Management added SanDisk to the PLUS Global HBM Semiconductor ETF during its May periodic rebalancing to increase exposure to NAND flash memory companies.
