[E-Daily Reporter Kim Kyung-eun ] As semiconductor stocks—which had been driving the domestic stock market—stumbled, related exchange-traded funds (ETFs) suffered greater losses than the benchmark index. In particular, ETFs that had increased their weighting in SamsungElectroMechanics—in addition to the “top two” semiconductor companies, SamsungElectronics and SK hynix—saw their returns plummet. Observers point out that these ETFs rushed to increase their weighting in SamsungElectroMechanics in response to the company’s rising stock price, only to face headwinds during the market correction.

According to MP Doctor on the 13th, the KOSPI closed at 6,806.93, down 669.01 points (8.95%) from the previous trading day. The market leaders, SamsungElectronics(005930)and SK hynix(000660), fell 10.70% and 15.37%, respectively, compared to the previous session. SamsungElectroMechanics(009150)plummeted 18.62% over the same period, dragging down the index.

Domestic semiconductor ETFs also took a direct hit one after another. In particular, products with a high weighting in SamsungElectroMechanics saw especially sharp declines. SamsungElectroMechanics had been regarded as the biggest beneficiary of the high-value-added circuit board market for artificial intelligence (AI) servers and networks, and its stock price had been soaring. Semiconductor ETFs rushed to include it in their portfolios, but they were tripped up by the market correction.

According to Koscom’s ETF Check, the “KODEX AI Semiconductor TOP2 Plus” recorded a return of -14.85% that day, marking the worst performance among semiconductor ETFs (excluding leveraged funds). SamsungElectroMechanics accounts for 17.55% of this ETF’s portfolio.

Other ETFs with high exposure to SamsungElectroMechanics followed a similar trend. The “1Q K-Semiconductor TOP2+,” which holds 17.12% of SamsungElectroMechanics, fell 14.65% on the day. The “ACE K-Semiconductor TOP2+,” which holds 17.02% of SamsungElectroMechanics, dropped 14.18% on the day.

In addition, products with a SamsungElectroMechanics weighting of 15% or more—such as the “HANARO Fn K-Semiconductor” and “SOL AI Semiconductor TOP2 Plus”—all saw sharp declines across the board. The one-week returns for these ETFs were all recorded in the -20% range.

In contrast, ETFs that did not include SamsungElectroMechanics in their portfolios saw relatively limited declines. The daily returns for the “RISE AI Semiconductor TOP 10” and “PLUS Global HBM Semiconductor” were -8.17% and -8.64%, respectively.

The asset management industry has been adding SamsungElectroMechanics to its portfolios in large numbers based on the assessment that the company offers high medium- to long-term growth potential driven by improved earnings. In particular, the industry expects the company to continue benefiting from rising prices caused by supply shortages of multilayer ceramic capacitors (MLCCs) and flip-chip ball grid arrays (FC-BGAs).

However, concerns are growing over the concentration of ETF portfolios in specific stocks. Critics point out that the original purpose of these products—to invest across the entire industry, centered on the top two semiconductor companies—has been diluted, and the benefits of diversification have weakened.

There is also criticism that portfolios across asset management firms have become increasingly similar due to this concentration on top-market-cap stocks. Not only SamsungElectroMechanics but also SKSQUARE is cited as a key stock in which asset managers have recently been successively increasing their weightings. Both the KODEX AI Semiconductor TOP2 Plus and the HANARO Fn K-Semiconductor added SKSQUARE to their portfolios last month. Since SKSQUARE holds a stake in SK hynix, this move is intended to reflect the investment demand concentrated on large-cap semiconductor stocks by including SKSQUARE in the portfolios.

An industry insider noted, “The market’s assessment of SamsungElectroMechanics’ competitiveness in AI circuit boards remains positive,” but added, “As the stock price surged sharply in the short term, asset managers’ weightings in the stock also increased, and during the correction phase, ETF returns are moving in a similar direction.” The insider further advised, “When selecting a semiconductor ETF, investors should not simply look at the sector but also check the concentration of holdings and valuation risks.”