- Samsung Bloomberg Global Semiconductor ETF (“Sub-Fund”) is to provide investment results that, before fees and expenses, closely correspond to the performance of the Bloomberg Global Semiconductor Top 20 Index (“Index”).
- Investment involves risk, including the loss of principal. Historical performance does not indicate future performance.
- The Sub-Fund could be subject to certain key risks such as risk of New Index risk; Equity market risk; Concentration risk; Semiconductor sector risk; Emerging markets risk; Risks associated with depositary receipts; Currency risk; Securities lending transactions risk. Please note that the above listed investment risks are not exhaustive. Investors should refer to the prospectus and relevant offering documents of Samsung Bloomberg Global Semiconductor ETF for details, including the product features, risk factors and dividend policy. Investors should not base on this material alone to make investment decisions.
- The Manager may at its discretion pay distributions out of capital, or effectively out of capital, of the ETF, amounting to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment, resulting in an immediate reduction of the NAV per unit.
Rare opportunity to tap into the expected global chip shortage
- Chip shortage is expected to persist, supporting the semiconductor sector growth
- The semiconductor industry is one of the fastest-growing sectors in the global economy1
- Semiconductors increasingly dominate important aspects of our everyday life, from PC and smart phone, to automobile and even advanced medical devices
- Global semiconductor industry revenue is expected to grow with a 4% CAGR from 2020 till 2025, supported by steady demand growth and wider application2
- Several areas will have significantly higher growth. For example, semiconductor and sensor markets for IoT are projected to grow at a CAGR of 15.3% from 2015 till 20253
Global Semiconductor Industry Revenue
1 Source: IDC, https://www.idc.com/getdoc.jsp?containerId=prAP48247621, 19 September 2021
2 Source: Gartner, SIA, Morgan Stanley Research, as of 2020
3 Source: SEMI, https://www.semi.org/en/semiconductor-industry-2015-2025, 4 August 2015
Why investing in SAMSUNG Bloomberg Global Semiconductor ETF?
- First ever global semiconductor ETF in Asia4, comprised of semiconductor leaders listed in several regions including US, Asia and Europe
- Provides easy access to the ordinary shares (not just depositary receipt) of prominent semiconductor companies in Korea (e.g. Samsung Electronics, SK Hynix, etc.) and Taiwan (e.g. TSMC, etc.), which are relatively difficult for overseas investors to access
- One-for-All: Captures the global top semiconductor players with the highest total company level revenue from semiconductor business, covering the entire supply chain including upstream (e.g. semiconductor design) and downstream (e.g. manufacturing) businesses
- Provides access to US and European semiconductor giants in Asia time zone
- Relatively low investment threshold to invest in a basket of global semiconductor players
- Provides diversification for Hong Kong investors who tend to have China-focused portfolio
4 Source: Bloomberg, 30 September 2021
Top 10 Semiconductor Vendors by Revenue, Worldwide, 2020 (Millions of U.S. Dollars)5
|2020 Rank||2019 Rank||Company Name||2020 Revenue||2020 Market Share (%)||2019 Revenue||2019-2020 Growth (%)|
(outside top 10)
5 Source: Gartner, https://www.gartner.com/en/newsroom/press-releases/2020-04-12-gartner-says-worldwide-semiconductor-revenue-grew-10-4-percent-in-2020