Korean exchange-traded fund (ETF) market saw Chinese semiconductor and oil-related products lead weekly gains during the period from January 6 to 10, while aerospace, defense, and AI semiconductor ETFs that previously drove the market posted double-digit declines, according to Korea Exchange data. The shift occurred as AI fatigue in Korea and Taiwan prompted investors to seek alternatives in China's AI value chain, analysts noted. This marked a sharp reversal from recent growth themes that had dominated domestic and international equity markets.
Chinese Tech ETFs Dominate Weekly Gains with Semiconductor Focus
KODEX China Tech TOP10 recorded the highest weekly return at 5.70% among domestic listed ETFs from January 6 to 10, excluding leveraged, inverse products, and those with average daily trading volume below 100,000 shares. Chinese tech-related products filled the top ranks, with KODEX China STAR50 (Synthetic) and SOL China Growth Industry Active (Synthetic) both rising 4.73%. TIGER China STAR50 (Synthetic) gained 4.40%, TIGER China Hang Seng Tech rose 3.82%, TIGER China Semiconductor FACTSET climbed 3.66%, and KODEX China Hang Seng Tech advanced 3.55%.
Shin Seung-woong, researcher at Shinhan Investment & Securities, stated that "China's AI value chain emerged as an alternative amid growing fatigue from Korea and Taiwan's AI leading stocks." Park Soo-jin, researcher at Mirae Asset Securities, advised that "from an investment perspective, rather than limiting exposure to the global memory super-cycle benefits only to US and Korean memory companies, it is necessary to consider a strategy of expanding allocation to China's semiconductor value chain as well."
Oil and Covered Call Products Post Strong Performance
Oil-related products also ranked among top performers. TIGER Crude Oil Futures Enhanced (H) rose 5.11%, while RISE US S&P Oil Production Companies (Synthetic H) gained 4.44%. RISE 200 High Dividend Covered Call ATM, a high-dividend covered call strategy product, climbed 5.29% to record the second-highest weekly return.
Aerospace and Defense ETFs Record Sharp Weekly Declines
Growth theme ETFs that had previously led domestic and international equity markets dominated the top decliners. SOL US Aerospace TOP10 posted the largest weekly decline at 14.22%. KODEX US Aerospace fell 13.95%, TIGER US Space Tech dropped 13.48%, and ACE US Space Tech Active declined 13.03%, with US aerospace and space tech products sweeping the top four spots for largest declines. The aerospace theme, which had surged on SpaceX-related positive news, experienced significant retracement during the week.
Defense themes also faced corrections. PLUS K-Defense fell 12.98%, and SOL K-Defense declined 12.86%. PLUS Hanwha Group Stocks, which includes multiple major defense stocks, plunged 12.11%. AI semiconductor, shipbuilding, and robotics themes also showed pronounced weakness. SOL AI Semiconductor TOP2 Plus dropped 12.95%, while KODEX China Humanoid Robot and SOL Shipbuilding TOP3 Plus fell 12.78% and 12.23%, respectively.
Jang Chi-young, researcher at Hana Securities, commented that "space theme ETFs can share related momentum, but many products have high allocations to SpaceX, which also carries the possibility of increased stock price volatility."
FAQ
Which ETF recorded the highest weekly return in the Korean market from January 6 to 10?
KODEX China Tech TOP10 recorded the highest weekly return at 5.70% among domestic listed ETFs during the period from January 6 to 10, according to Korea Exchange data.
Why did Chinese semiconductor ETFs outperform Korean AI stocks during the week of January 6 to 10?
Chinese semiconductor ETFs outperformed as AI fatigue grew in Korea and Taiwan's AI leading stocks, prompting investors to seek alternatives in China's AI value chain, according to Shin Seung-woong, researcher at Shinhan Investment & Securities.
Which ETF experienced the largest weekly decline from January 6 to 10?
SOL US Aerospace TOP10 posted the largest weekly decline at 14.22% during the period from January 6 to 10, following significant retracement after earlier gains driven by SpaceX-related positive news.
