TechFlow News, July 19, according to South Korean media NATE, Samsung Securities released a report stating that a "concentrated" investment trend is rising in the South Korean ETF market. ETFs that reduce the number of holdings and increase the weight of industry leaders have become a new hotspot, with investors tending to use ETFs to concentrate bets on core industry leaders in various themes. Currently, the supply and demand for "ultra-concentrated ETFs" with significantly compressed holdings in the South Korean market are growing rapidly. Traditional industry or thematic ETFs usually hold 30 to 50 or more stocks, while ultra-concentrated ETFs eliminate lower-tier companies in fields such as semiconductors, robotics, and tech giants, focusing only on 1 to 2 core leaders.
Data shows that the U.S. equal-weight ETF MAGS, centered on the "Seven Giants", outperformed the Nasdaq 100 Index and the S&P 500 Index, further boosting market confidence in concentrated ETFs. As of July 13, the SOL AI Semiconductor TOP2 Plus ETF reached a size of 5.787 trillion KRW, becoming the largest product among ETFs listed this year; the ACE K Semiconductor TOP2+ ETF and 1Q K Semiconductor TOP2+ ETF reached sizes of 291.4 billion KRW and 245.5 billion KRW respectively.
