According to data from the Korea Exchange, in July, a month of record volatility in the South Korean stock market, eight of the ten worst-performing ETFs in the domestic market, excluding leveraged and inverse ETFs, were semiconductor-related products. Data released by the Korea Exchange on July 4th showed that the "SOL AI Semiconductor TOP2 Plus" experienced the largest decline in July, falling 38.15% in a single month. Additionally, the "ACE K Semiconductor TOP2+" fell 36.25%, and the "SOL Semiconductor Front-End Process" ETF, which covers multiple semiconductor equipment companies, also fell 35.97%.
It is worth noting that not only did ETFs investing in South Korean semiconductor companies perform poorly, but related products containing overseas semiconductor stocks also suffered significant declines. Analysts believe that with the sharp drop in US semiconductor stocks, concerns about a possible peak in the global semiconductor cycle spread rapidly, leading to a general decline in returns across the global semiconductor sector.
Furthermore, the other two ETFs in the top ten declines are both in the aerospace sector: "KODEX US Aerospace" (down 37.81%) and "TIGER US Space Technology" (down 35.96%). Both ETFs hold SpaceX stock, and SpaceX has the highest weighting in both.
