Have you heard of SK Hynix - or perhaps Samsung?
Do you constantly hear about the memory sector but don't quite understand it?
About a month ago, something happened that might interest you!
The first ETF of its kind for the memory market was launched in the US!
This is the first-ever ETF on the American stock exchange that focuses specifically and exclusively on the memory sector.
Until today, investors who wanted exposure to the memory sector had to settle for general chip ETFs, and if you invest in the United States, you had no exposure at all to the Korean giants leading this revolution.
Now, an opportunity has arisen to invest directly in components responsible for fast data storage and processing.
The interesting part is, the core of the portfolio,
It is built on the "Big Three" that dominate the global market, with Samsung Electronics holding about 25% of the ETF, SK Hynix holding about 24%, and Micron also taking about 24% of the portfolio.
Together, these three companies constitute about 75% of the certificate, meaning that South Korean Samsung and SK Hynix alone account for almost half of the ETF's total weight.
A very interesting point is Samsung's positioning at the top.
Currently, SK Hynix actually leads in terms of global memory market share, but Samsung is marked as a true rising star - and many investors see it as the queen of chips of the future that could even compete with TSMC.
In addition to market leaders, the ETF includes other companies involved in NAND (memory used for permanent storage like in SSDs) and advanced storage solutions.
Many companies are gaining exposure in the American market for the first time!
Among the companies in the portfolio are: Kioxia, SanDisk, Western Digital, Seagate, Nanya, Winbond.
This structure creates broad geographical diversification that includes companies from Korea, the US, Japan, and Taiwan,
but on the other hand, the concentration in large companies highlights their undisputed importance to the global supply chain.
This move comes as demand for artificial intelligence soars, and memory becomes a major 'bottleneck'.
The implication is that, ultimately, even the most powerful processors simply cannot function without fast memory to support them, which is why demand for these components is at its peak.
The new ETF provides an indirect and convenient way to invest directly in giants like Samsung and SK Hynix for those investing in the American market.