Press Releases

Solactive Launches AI Semiconductor Index for Shinhan ETF

Solactive is pleased to announce the launch of the Solactive US AI Semiconductor Chip Makers Index for Shinhan Asset Management in South Korea. The SOL US AI SEMICONDUCTOR CHIP MAKERS ETF will track the Solactive index for investors seeking passive investment opportunities in leading companies that drive advancements in artificial intelligence through semiconductor technologies.

The index is designed to track the performance of U.S. companies listed on the NASDAQ Stock Exchange or the New York Stock Exchange (NYSE), which are active in developing and creating artificial intelligence (AI) semiconductor chips and related technologies. By leveraging Solactive’s proprietary natural language processing system ARTIS® to screen public information such as company reports and financial news, it identifies and ranks key companies according to their exposure to the AI semiconductor industry, including AI Chip Manufacturing and Design, AI Accelerators and Processing Units, AI Edge Computing, as well as AI Semiconductor Process Optimization and Automation.

The Solactive US AI Semiconductor Chip Makers Index selects the top 10 eligible companies based on their score from ARTIS® and free float market capitalization. The top 3 components with the highest ARTIS® score, which indicates a high exposure degree to the index strategy, receive a weight of 20%, while the remaining components are weighted based on free float market capitalization, with a maximum individual weight of 15%.

The ETF is listed on 16 April 2024, on the Korea Stock Exchange with the ticker code 479620.KS. 

Timo Pfeiffer, Chief Markets Officer at Solactive, said: “We are delighted to partner with Shinhan to provide exposure to this strategically important sector for AI technology. The index utilizes our cutting-edge tools to capture the performance of highly relevant companies driving innovation in AI semiconductors.“

JungHyun Kim, Head of ETF Business Division at Shinhan Asset Management, comments: “AI (Artificial intelligence) is penetrating deeper and deeper into our daily lives. It brings great challenges and opportunities to semiconductor industry. In particular, semiconductor chip makers are responding most actively to these challenges and are facing great opportunities with their own intellectual property for the chips.
Shinhan Asset Management is delighted to provide an ETF based on Solactive US AI Semiconductor Chip Makers index, which selects the top 10 companies focusing on designing and developing semiconductor chips. We believe that the market’s adoption of AI is just in the beginning stages. That means the semiconductor market still has significant growth potential, and that growth is being led by chip makers. We hope SOL US AI Semiconductor Chip Makers ETF will serve as an efficient vehicle for investors to tap on those potentials.”