Eleven domestic Korean active ETFs incorporated SK Hynix American Depositary Receipts (ADR) immediately following the Nasdaq listing, as of the 16th. The rapid adoption occurred because overseas stock ETFs investing in US markets can now directly hold SK Hynix shares listed on US exchanges, removing prior investment constraints. Asset management firms including Asset Plus (2 ETFs), Samsung Active (4 ETFs), Timefolio (4 ETFs), and Mirae Asset (1 ETF) added the ADR to portfolios right after the listing. The SK Hynix American Depositary Shares (ADS) closed at $154.03 on the 17th, up 1.13%, maintaining approximately a 25% premium over the domestic share closing price of 1,842,000 won. Asset managers are considering further expansion based on the attractive price-to-earnings ratio compared to global competitors, while the securities industry views the sustained ADS premium as a potential positive signal for domestic shares by highlighting undervaluation.
11 Korean ETFs Incorporate SK Hynix ADR Post-Nasdaq Listing
As of the 16th, 11 domestic ETFs held SK Hynix ADR positions, according to the financial investment industry on the 19th. Asset Plus Asset Management operates 2 ETFs with SK Hynix ADR, Samsung Active Asset Management and Timefolio Asset Management each manage 4 ETFs, and Mirae Asset Asset Management runs 1 ETF. All firms added the ADR to portfolios immediately after the Nasdaq listing.
The surge in purchases from the listing date stemmed from the removal of investment restrictions on overseas stock ETFs. ETFs investing in US stocks must structure portfolios around US exchange-listed securities, making direct SK Hynix holdings previously difficult. Asset management firms are reviewing expanded incorporation based on the attractive price-to-earnings ratio compared to global competitors.
SK Hynix ADS Maintains 25% Premium Over Domestic Shares
US local demand remains strong. SK Hynix ADS closed at $154.03 on the 17th, up 1.13%, rising despite weakness in US semiconductor stocks. Based on the domestic share closing price of 1,842,000 won that day, the premium reached approximately 25%. The premium surged to 51% in the early listing period before adjusting, but a premium persists.
Securities Industry Views ADS Premium as Positive Domestic Signal
The securities industry considers the high ADS premium a potential positive factor for domestic shares. The fact that overseas investors pay higher prices stimulates the perception of undervaluation in domestic shares.
FAQ
How many Korean ETFs incorporated SK Hynix ADR after the Nasdaq listing?
Eleven domestic active ETFs incorporated SK Hynix ADR as of the 16th, including 2 from Asset Plus, 4 from Samsung Active, 4 from Timefolio, and 1 from Mirae Asset.
What premium does SK Hynix ADS trade at compared to domestic shares?
SK Hynix ADS closed at $154.03 on the 17th, maintaining approximately a 25% premium over the domestic share closing price of 1,842,000 won. The premium previously peaked at 51% in the early listing period.
Why did Korean ETFs rapidly adopt SK Hynix ADR?
Overseas stock ETFs investing in US markets can now directly hold SK Hynix shares following the US exchange listing, removing prior investment constraints that made direct holdings difficult.
