Second-Half ETF Strategy Shifts From Hynix to HBM4, AI Power and Covered Calls
Korea’s ETF market entered the second half after an extreme first-half tilt toward Hynix and AI semiconductors. Net assets climbed to 513 trillion won, up 72%. The next portfolio focus is a barbell of HBM4 equipment, U.S. AI power infrastructure and income-oriented active ETFs.
The second-half ETF strategy is no longer a simple chase of the first-half semiconductor rally. The portfolio needs both a spear and a shield: growth exposure through HBM4 equipment and U.S. AI power infrastructure, and downside protection through covered-call and income-oriented active ETFs.
A 513 Trillion Won Market Rebalances
Korea-listed ETF assets have expanded to 513 trillion won, rising 72% in a year. Retail money, pension accounts and retirement savings have accelerated the shift into ETFs. Yet first-half performance became heavily concentrated in Hynix, AI chips and high-bandwidth memory. That concentration lifted returns but also created valuation pressure and profit-taking risk. In the second half, investors need broader supply-chain exposure rather than single-stock momentum.
HBM4 and AI Power Become the Growth Axis
The HBM4 transition affects more than memory makers. It raises demand for process tools, packaging, inspection, bonding and back-end equipment. For Korean investors, won-based returns, currency swings and the tax structure of locally listed overseas ETFs matter. In the U.S., AI data-center expansion is spreading demand to power grids, transformers, electrical equipment, cooling systems, construction and engineering companies. Growth ETFs are therefore best framed around both HBM4 equipment and AI power buildout.
Covered Calls Add the Shield
Pure beta ETFs can struggle when markets digest crowded trades. Covered-call ETFs give up part of the upside in exchange for option premium income. Income active ETFs can combine dividend stocks, short-term bonds, investment-grade credit, REITs and other cash-flow assets. In Korean pension and IRP accounts, tax deferral increases the usefulness of monthly distribution products. Investors still need to check whether distributions include return of capital and whether currency hedging changes the actual won return. The dominant second-half ETF approach is to widen growth exposure while using income tools to manage drawdowns.
Key points
- Korea’s ETF market entered the second half after an extreme first-half tilt toward Hynix and AI semiconductors. Net assets climbed to 513 trillion won, up 72%. The next portfolio focus is a barbell of HBM4 equipment, U.S. AI power infrastructure and income-oriented active ETFs.
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FAQ
What is the core second-half ETF strategy?
It combines growth exposure to HBM4 equipment and U.S. AI power infrastructure with covered-call and income active ETFs for risk control.
How large is Korea’s ETF market?
Korea-listed ETF net assets stand near 513 trillion won, up 72% over the year.
What role do covered-call ETFs play?
They trade part of the upside for option premium income, helping cushion portfolios during volatile markets.
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