KICK Korea Semiconductor Index ETF launches on NYSE Arca

Kiwoom Securities USA has launched the KICK Korea Semiconductor Index ETF (KCHP) on the NYSE Arca, providing US investors with direct exposure to the South Korean semiconductor sector. The fund tracks the Akros Korea Semiconductor Index, which includes 20 companies spanning the entire chip value chain, including memory, foundry, equipment, materials, packaging, and design firms.

Major holdings include industry leaders Samsung Electronics and SK Hynix. To manage risk, the fund employs a modified market-capitalization-weighted system where no single stock exceeds 20% of the portfolio, and the combined weight of holdings with at least a 4.5% allocation is capped at 45%. The ETF has an annual expense ratio of 0.65%.

The fund aims to simplify access for international investors by removing the need for foreign brokerage accounts or direct orders on Korean exchanges. However, the prospectus notes several risk factors, including industry volatility, currency fluctuations between the Won and the US Dollar, and potential price discrepancies due to the different trading hours between South Korean and US markets.