[Edaily Reporter Kim Kyung-eun ] SK Hynix American Depositary Receipts (ADRs) are being successively added to major U.S. semiconductor exchange-traded funds (ETFs). Following its inclusion in “SMH,” the largest U.S. semiconductor ETF, SK Hynix has also been added to “SOXL,” a 3x leveraged semiconductor ETF popular among retail investors. Just over two months after listing on the U.S. stock market last July, SK Hynix has rapidly established itself as an investment target for major passive funds, and the scale of indirect investments in SK Hynix by domestic investors is expected to grow.

According to the financial investment industry on the 22nd, the “iShares Semiconductor ETF (SOXX),” which tracks the New York Stock Exchange (NYSE) Semiconductor Index (ICESEMI), recently added SK Hynix ADRs (ticker: SKHY) to its portfolio. As of the 18th (local time), SOXX held 8,167,602 shares of SK Hynix ADRs, valued at approximately $1.53 billion. SK Hynix accounts for 3.32% of the ETF’s portfolio, ranking 13th among its 30 constituent stocks. Its weighting is higher than that of Taiwan’s TSMC (3.05%).

SK Hynix has also been added to the “Direxion Daily Semiconductor Bull 3x ETF (SOXL),” which tracks the daily return of the same index by a factor of three. As of the 21st, the fund held 2,376,150 shares of SK Hynix ADRs, with a market value of approximately $445 million and a weighting of 2.06%.

SOXL is an ETF that sees particularly active trading among Korean investors. According to SaveRo, a service of the Korea Securities Depository, as of the 18th, the value of SOXL holdings by Korean investors stood at $5.63057 billion, ranking fourth among all foreign stocks. Over the past month, the settlement value of purchases reached $3.53508 billion, ranking first among all foreign stocks.

Previously, the “MVIS US Listed Semiconductor 25 Index”—which is tracked by VanEck’s “SMH (VanEck Semiconductor ETF),” the largest U.S. semiconductor ETF—also included SK Hynix ADRs with a weighting of approximately 4.8% following its regular September rebalancing.

In South Korea as well, avenues for indirect investment in SK Hynix ADRs have opened up. Samsung Asset Management’s “KODEX U.S. Semiconductor” fund, which tracks the same index as the SMH, has newly added SK Hynix ADRs with a weighting of approximately 4.8%. Domestic investors can invest in the KODEX U.S. Semiconductor fund in Korean won to gain exposure to the same portfolio as the SMH—which includes not only NVIDIA, TSMC, Broadcom, ASML, and Micron but also SK Hynix ADRs.

Han Dong-hoon, a manager at Samsung Asset Management, said, “The semiconductor industry, which underpins artificial intelligence (AI), is undergoing various changes simultaneously amid a massive growth trend,” adding, “The inclusion of SK Hynix ADRs has once again proven that the ‘KODEX U.S. Semiconductor’ fund is a product that swiftly reflects the latest trends and market representation.”

The market’s next focus is on the upcoming regular revision of the Nasdaq 100 Index this December. The Nasdaq 100 is a leading index tracked by large-scale passive funds worldwide, including the “Invesco QQQ Trust (QQQ).” If SK Hynix ADRs are also included in the Nasdaq 100, the scope of global passive funds required to hold SK Hynix is expected to expand significantly.