TIGER Philadelphia AI Semiconductor NASDAQ ETF’ listed on the 26th
The world’s first Philadelphia AI Semiconductor Index tracking product
Photo = Mirae Asset Global Investments Mirae Asset Global Investments is launching a new ‘TIGER Philadelphia AI Semiconductor Nasdaq Exchange Traded Fund (ETF)’ that focuses on investing in artificial intelligence (AI) semiconductor stocks. This ETF is the world’s first product that tracks the US ‘AI Philadelphia Semiconductor’ (ASOX). The explanation is that they focused on AI by excluding legacy (old) semiconductor stocks.
Kim Nam-ki, CEO of ETF Management at Mirae Asset Global Investments, held a press conference at Mirae Asset Center One in Eulji-ro, Seoul on the 22nd and introduced the product. TIGER Philadelphia AI Semiconductor NASDAQ ETF will begin trading in the stock market on the 26th.
The new product follows the ASOX index, which was released in Korea by the Nasdaq stock exchange for the first time in the world last September. The ASOX index debuted 30 years after the introduction of the ‘Philadelphia Semiconductor Index’ (PHLX), a representative global semiconductor index. Unlike PHLX, which invests in overall semiconductor stocks, ASOX is said to have focused on the AI value chain.
ASOX consists of 20 semiconductor companies with a market capitalization of more than $300 million (about 420 billion won) listed on major U.S. exchanges. Only fabless (semiconductor design company), design asset and electronic design automation (IP&EDA), equipment, back-end process, and foundry (semiconductor consignment production) companies were selected, and integrated semiconductor companies (IDM) were excluded.
‘TIGER Philadelphia AI Semiconductor NASDAQ ETF’ is the world’s first product that tracks the ASOX index. Regarding the background of the world’s first product, Jeong Eui-hyun, head of the ETF management team, said, “The largest product among ETFs tracking the PHLX index is the ‘TIGER Philadelphia Semiconductor Nasdaq ETF’,” adding, “Because of this, there was great interest in the Korean market in Nasdaq as well.” He said. Lee Jeong-hwan, head of ETF Management Division 1 (managing director). / Photo = Jin Young-ki, Hankyung.com reporter Lee Jeong-hwan, head of ETF Management Division 1 (managing director), emphasized the importance of AI investment, quoting the remarks of Professor Jeffrey Hinton of the University of Toronto. Professor Hinton said in an interview with a media outlet, “Now the possibility of an AI winter has disappeared. AI will have an unprecedented impact on society.” Professor Hinton is considered the ‘godfather’ who pioneered the field of AI.
In addition, Nvidia’s inclusion in the Dow Jones Industrial Average instead of Intel was interpreted as an important inflection point. He explained, “For the first time in 25 years since 1999, the representative semiconductor stock has changed from Intel to NVIDIA,” and that AI semiconductors have surpassed legacy semiconductors and have come to represent the future semiconductor market.
Director Lee said, “As can be seen from Nvidia’s growth over the past five years, there has been a significant change in the semiconductor industry to the point where AI can determine the value of a company. To prepare for this, the TIGER Philadelphia AI Semiconductor Nasdaq ETF aims to support the growth of next-generation AI semiconductors. “It is a leading legacy-free semiconductor ETF,” he explained.
As of the end of last month, Nvidia’s proportion in this product reached 22.2%. TSMC (18.9%), Broadcom (15.6%), ASML (8.6%), AMD (7%), and Qualcomm (5.4%) are also included by more than 5%. Director Lee said, “Considering the characteristics of a growing industry with a strong winner-takes-all tendency, we have raised the upper limit on what one stock can occupy,” and added, “Big tech companies are expected to actively increase AI-related investments next year as well.”
CEO Kim said, “AI is a big wave and the beginning of a new industrial revolution, and at the same time, the importance of securing retirement funds for a prosperous life is increasing as Korea prepares to enter a super-aging society in 2025. Mirae Asset Global Investments will continue to be a TIGER.” “We will strive to develop innovative growth products such as the TIGER Philadelphia AI Semiconductor NASDAQ ETF using ETF’s unique know-how and become a long-term investment partner,” he said.
Hankyung.com reporter Jinyoung-gi young71@hankyung.com
**PAA Focus: Risk Mitigation vs. Concentration** The ETF holds a substantial portion of Nvidia shares. How does the TIGER Philadelphia AI Semiconductor ETF balance the potential benefits of investing heavily in leading AI companies like Nvidia with the need for diversification to mitigate risk?
## Interview: Riding the AI Wave with the TIGER Philadelphia AI Semiconductor ETF
**Introduction:**
Welcome to World-Today-News.com, where we bring you insightful conversations on the latest developments shaping our world. Today, we’re joined by two distinguished guests to discuss a groundbreaking investment opportunity – the TIGER Philadelphia AI Semiconductor NASDAQ ETF. This world-first ETF tracks the AI Philadelphia Semiconductor Index (ASOX), focusing exclusively on companies driving the burgeoning artificial intelligence semiconductor industry.
**Section 1: The Rise of AI Semiconductors – A Paradigm Shift
**Guest 1:
Mr. [Guest 1 Name], you are a leading expert in the semiconductor industry. Can you help our viewers understand why this shift towards AI-focused semiconductor companies is so significant? What sets them apart from traditional semiconductor players?
**Guest 2:
Mr. [Guest 2 Name], Professor Hinton, often called the “godfather” of AI, recently declared that the possibility of an “AI winter” has disappeared. Could you elaborate on the implications of this statement and its relevance to the TIGER Philadelphia AI Semiconductor ETF?
**Section 2: Understanding the TIGER Philadelphia AI Semiconductor ETF
**Guest 1:**
This ETF tracks the ASOX index. What specific selection criteria are used to identify the companies included in this index, and how does this differ from broader semiconductor indices like the PHLX?
**Guest 2:**
The TIGER Philadelphia AI Semiconductor ETF emphasizes AI-focused companies, excluding legacy semiconductor companies. Can you explain the rationale behind this decision and its potential benefits for investors?
**Section 3: Investment Implications and Future Outlook
**Guest 1:**
Nvidia’s recent inclusion in the Dow Jones Industrial Average, replacing Intel, signifies a major shift in the perception of the semiconductor landscape. Do you believe this signals a broader trend towards AI-dominated semiconductor markets?
**Guest 2:**
The TIGER Philadelphia AI Semiconductor ETF holds a significant proportion of Nvidia shares.
Some may argue that concentrating on a few leading companies carries inherent risks. How does this ETF balance potential gains with diversification considerations?
**Section 4: Conclusion and Call to Action
**Guest 1 & Guest 2:
What advice would you give to investors interested in exploring the potential of AI semiconductors through this ETF? What are some crucial factors they should consider?
**Final Thoughts:**
The AI revolution is upon us, and the TIGER Philadelphia AI Semiconductor ETF offers investors a unique opportunity to participate in this transformative technological shift. Through careful analysis and a long-term perspective, this ETF could hold the key to unlocking substantial growth potential in the exciting world of AI semiconductors.
**Thank you to our esteemed guests for sharing their invaluable insights!**
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