investors flock to sci-tech chip ETF amid semiconductor surge
Shanghai, Monday, 6 January 2025.
The Sci-Tech Chip ETF is witnessing a remarkable surge in investor interest, driven by the booming semiconductor sector. In the past four days, the ETF recorded a net inflow of 12.92 billion yuan, capturing the attention of market watchers. This influx coincides with a 17.12% rise in the ETF’s value over the past three months, highlighting the growing confidence in semiconductor applications. The sector’s momentum is fueled by advancements in AI and autonomous technologies, setting the stage for a promising 2025. Analysts predict continued growth as demand for innovative chip solutions rises. The ETF’s trading volume reached 6.05 billion yuan with a turnover rate of 2.71%, reflecting robust market activity. The semiconductor industry’s recovery and optimistic forecasts underscore the ETF’s appeal to investors seeking exposure to cutting-edge tech developments.
Market performance and fund flows
The Sci-Tech Chip ETF (588200) demonstrates remarkable market strength with consecutive capital inflows over four days, accumulating 12.92 billion yuan [1]. The fund’s trading activity remains robust, with a daily turnover of 6.05 billion yuan and a 2.71% turnover rate [1]. Over a three-month period ending January 3, 2025, the ETF posted gains of 17.12%, pushing its total assets under management to 222.87 billion yuan [1].
Industry outlook and growth projections
The World Semiconductor Trade Statistics (WSTS) projects optimistic growth for the semiconductor industry, forecasting global sales to reach 697.2 billion USD in 2025, representing an 11.2% year-over-year increase [1]. This follows an anticipated 19.0% growth in 2024, with sales expected to hit 626.9 billion USD [1]. The positive outlook is driven by expanding AI applications and increasing demand for autonomous technology solutions [1].
Portfolio composition and strategy
The ETF maintains a concentrated portfolio with its top ten holdings accounting for 61.14% of total assets [1]. Key components include industry leaders in chip manufacturing, semiconductor equipment, and AI technology development. According to National Gold Securities, the semiconductor sector’s upward trajectory is supported by two main drivers: AI applications across various industries and the push for self-reliant semiconductor capabilities [1].