South Korea's ETF Market Sees Semiconductor Dominance Shaken by Oil and Nuclear Power Surge
South Korea's exchange-traded fund (ETF) market is undergoing a significant shift as semiconductor-related products face competition from oil and nuclear power ETFs. The 'ACE SK Hynix Single Stock Leverage' topped the return rankings among South Korea-listed ETFs from September 1 through 10, gaining 23.13%, while positions 2 through 7 were occupied by single-stock leverage products based on SK Hynix.
However, oil and nuclear power-related products have surged into the top ranks by returns, broadening the options available to investors. 'KODEX WTI Crude Oil Futures (H)' rose 11.60% over the ten-day period to claim 10th place overall, while 'TIGER Crude Oil Futures Enhanced (H)' gained 10.46% over the same period to rank 15th.
The nuclear power theme's ascent is equally notable, with 'TIGER Korea Nuclear Power' climbing 27.51% last month to reach 18th place and adding another 11.11% this month to move up to 11th. The surge in oil ETFs stems from sharply rising international crude prices amid escalating geopolitical tensions between the U.S. and Iran.
Yoon Jae-hong, an analyst at Mirae Asset Securities, noted that 'the resumption of hostilities between the U.S. and Iran and the tightening blockade of the Strait of Hormuz have expanded the risk premium on crude supply.'