Domestic active exchange-traded fund (ETF) managers have moved quickly to add SK hynix American depositary receipts (ADRs) to their portfolios. With SK hynix's ADR listing, overseas equity ETFs can now hold SK hynix.
According to the financial investment industry on the 19th, 11 domestic ETFs have included SK hynix ADRs, including "Assetplus Global First-Class Company Focus 10 Active ETF," "TIME Global AI Artificial Intelligence Active ETF," and "KoAct Palantir Value Chain Active."
By manager, Assetplus Asset Management has 2, Samsung Active Asset Management 4, Timefolio Asset Management 4, and Mirae Asset Global Investments 1. These managers began sequentially adding SK hynix ADRs starting on the 11th, immediately after the U.S. Nasdaq listing.
In particular, Assetplus Asset Management's "Assetplus Global First-Class Company Focus 10 Active ETF" showed an SK hynix ADR weighting of more than 6%. The "Assetplus Global Blacksmith Active ETF" also included it with a 5.44% weighting.
Behind managers' decisions to add SK hynix ADRs is the lifting of investment target constraints for overseas equity ETFs. Because they could include only overseas-listed shares, they could not hold SK hynix, which is listed on the KOSPI, but a workaround has become possible.
Asset managers are reportedly considering further increasing their SK hynix ADR weightings or newly adding them to other ETFs. Inclusion in overseas equity passive ETFs is also anticipated during the regular changes in the second half or at next year's index adjustment.
An asset management official said, "Despite the rise in domestic semiconductor stocks, overseas ETFs could not hold SK hynix and other domestically listed shares," adding, "We had been adjusting the memory semiconductor sector weighting through Micron and others, and now we have an alternative."