Shown above is the advertising board in New York, which shows the ETF product of Mirae Asset Global Investments. Photo courtesy of Mirae Asset Global Investments

Individual subscription for Tiger semiconductor ETF nears $400 million in 2022

South Korea’s Mirae Asset Global Investments announced on Jan. 10 that many individual investors had snapped up its leveraged Tiger ETF product tracking the Philadelphia Semiconductor Sector last year.

The product, dubbed Tiger Synth-US PHLX Semiconductor Sector Leverage ETF, drew $373 million from individual products during 2022 alone.

Mirae Asset said that its semiconductor ETF had been a dominant champion in the market as no other Korean competitors even surpassed the $100 mark in the annual performance.

Short for Exchange Trade Funds, ETFs track an index as compared to index funds. They are regarded as low-risk investments because of their diversification, affordable management feeds, and high price visibility.

During the past several years, ETFs have gained traction across the globe thanks to their outstanding performances. Mirae Asset and Global X have been one of the global leaders in the ETF market.

The Philadelphia Semiconductor Sector refers to an index of the 30 largest U.S. companies primarily involved in the design, distribution, manufacture, and sale of semiconductors.

The index, which was launched in 1993, currently includes such corporations as Amkor Technology, Broadcom, Micron Technology, NVIDIA, Qualcomm, and Texas Instruments.

The index plunged 36 percent last year, underperforming the NASDAQ that went down by 33 percent.

Mirae Asset notes, however, investors hope for a fast turnaround in the chip industry because it gains significance in the global ESG trend.

“The chip industry suffered setbacks last year due to the downturn in demand, which is already reflected in the share prices of related companies,” a Mirae Asset official said.

“In case the inventory shows signs of decreasing, it would signal that chip corporations’ share price is set to get back on track.”