Exchange Traded Concepts Launches 20-Stock Korea Semiconductor ETF on NYSE Arca

Exchange Traded Concepts announced Monday it has partnered with Kiwoom Securities (USA) to launch the KICK Korea Semiconductor Index ETF on NYSE Arca under the ticker KCHP.

The fund tracks an index of 20 semiconductor companies listed on the Korea Exchange across memory, foundry, equipment, materials, packaging, and design, anchored by Samsung Electronics and SK Hynix.

How the Index Structure Works

American institutional and retail buyers can now trade direct exposure to South Korea’s chip supply chain through standard brokerage accounts. They do not need local accounts on the Korea Exchange. Because underlying assets trade in Korean won, currency swings against the US dollar will directly affect net investor returns.

Exchange Traded Concepts uses a modified market-capitalization weighting model to cap exposure to individual heavyweights. This structure prevents Samsung Electronics and SK Hynix from dominating the fund. Beyond the two primary chipmakers, the basket holds domestic producers of specialty materials, design houses, packaging contractors, and manufacturing equipment.

The Play on Asian Hardware Suppliers

Most broad Asian equity funds dilute exposure across consumer internet, banking, and conglomerates. That dilution blunts direct participation in the memory chip cycle. Packaging Korea’s specialized fabrication network into a single product targets investors seeking pure hardware exposure tied to global computing infrastructure, bypassing single-stock settlement risk on Seoul’s bourse.

Earnings power remains heavily concentrated at the top. The supply chain beneath Samsung and SK Hynix relies directly on the capital spending plans of those two anchor tenants. When memory pricing or capital budgets swing in Seoul, ancillary tooling and packaging vendors face sharper revenue volatility.

Tracking Capital Shifts Across the Pacific

Yoon Gu Eric Lee, president and CEO of Kiwoom Securities (USA), said the index captures the secondary equipment, materials and design companies built around the country’s memory and foundry sectors.

Trading in KCHP will test US investor appetite for targeted Asian hardware suppliers. Portfolio managers will have to balance foreign-exchange risk against direct equity holdings in Seoul.