Korea Investment Management debuts semiconductor ETF in Hong Kong

Korea Investment Management Co. announced on Monday that it listed a semiconductor exchange-traded fund (ETF) jointly developed with a Chinese asset management company on the Hong Kong stock exchange on Friday.

The CUAM Solactive China & Global Semiconductor ETF is the first product launched under a strategic cooperation agreement signed in November last year between Korea Investment Management and CUAM HK, the Hong Kong subsidiary of China Universal Asset Management Co.

Korea Investment Management is responsible for product development and investment advisory services, while CUAM HK handles local fund management.

The ETF tracks the Solactive ACE ETF Connect China & Global Semiconductor Top 30 Index and invests in 30 companies, including global semiconductor players such as Nvidia Corp., Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics Co., ASML Holdings N.V., and Broadcom Inc., as well as technology companies in China and Hong Kong.

The two companies plan to seek inclusion in the ETF Connect program, which would allow mainland Chinese investors to trade the Hong Kong-listed fund.

Korea Investment Management also plans to invest about $5 million of its own capital to support the ETF’s initial market entry, help establish an initial asset base, and strengthen cooperation with CUAM HK.