Key Takeaways
- • South Korean asset managers are capturing significant capital flows into AI and semiconductor-focused ETFs, with flagship funds like the "Korea Investment Global AI & Semiconductor TOP10 Fund" recording cumulative returns of 54.6% since launch and attracting billions in won-denominated inflows during May 2026.
- • Samsung Electronics and SK Hynix are positioned as portfolio anchors across multiple leveraged semiconductor ETFs, with new products like "KODEX AI Semiconductor TOP2 Plus" and "SOL AI Semiconductor TOP2 Plus" launching to capture momentum-driven investor demand amid the hardware infrastructure cycle.
- • Covered call and momentum rotation strategies are dominating tech hedge fund performance, with ETF assets growing substantially—including 154.4 billion won in the "KODEX Semiconductor Target Weekly Covered Call" and 143.9 billion won in the "TIGER Semiconductor TOP10 Covered Call Active" ETF—as institutional investors seek income and volatility management alongside long AI exposure.
- • The "hardware golden age" is sustaining strong capital allocation to overseas semiconductor and data center investment plays, with global big tech firms' data center expansion proceeding regardless of macroeconomic headwinds, supporting continued fund concentration in AI infrastructure trades.
- • Elevated volatility in South Korean equity markets (VKOSPI) is driving tactical rotation strategies that maintain long exposure to AI and semiconductor megatrends while using weekly and monthly momentum rebalancing to capture short-term price dislocations.
Summary
Tech hedge funds and institutional investors are experiencing a notably strong performance month in May 2026, driven by sustained capital deployment into AI infrastructure and semiconductor hardware. The catalyst centers on what market participants are calling a "hardware golden age"—a structural period where winners and losers in the AI supremacy war are becoming increasingly clear, fueling concentrated positioning in semiconductor leaders and data center equipment providers.
South Korean asset managers are at the forefront of capturing this trend. The "Korea Investment Global AI & Semiconductor TOP10 Fund" has recorded a cumulative return of 54.6% since its launch, with significant net inflows concentrated in overseas AI and semiconductor exposure during mid-year. Fund managers like Cha Hye at Korea Investment Trust Management's global quantitative division emphasize that global big tech firms' data center investment plans are proceeding regardless of external market factors, providing a structural tailwind for hardware-focused strategies. This conviction is reflected in substantial ETF asset growth: the "TIGER Semiconductor TOP10 Covered Call Active" ETF attracted 143.9 billion won, while the "KODEX Semiconductor Target Weekly Covered Call" ETF captured 154.4 billion won in recent inflows.
Portfolio construction reflects a tactical shift toward high-conviction semiconductor plays. Samsung Electronics and SK Hynix are positioned at the top of most portfolios targeting AI and semiconductor exposure. Samsung Asset Management's rebranding of its "KODEX AI Semiconductor" product to "KODEX AI Semiconductor TOP2 Plus," alongside competitor launches like "SOL AI Semiconductor TOP2 Plus," signals intensifying competition for leveraged semiconductor exposure, with these single-stock leveraged products attracting approximately 40,000 new investors despite regulatory warning signs.
Fund managers are employing momentum rotation and covered call strategies to manage volatility while maintaining long exposure to AI infrastructure megatrends. These approaches allow monthly or weekly portfolio rebalancing based on price momentum analysis, providing downside cushion in a period of elevated KOSPI 200 Volatility Index readings. According to Kim Seung, head of ETF investment at NH Asset Management, the strategic recommendation remains clear: maintain robust long exposure to AI and semiconductor megatrends, but use derivative overlays and tactical rotation to navigate near-term market dislocation. This disciplined approach has resonated with institutional allocators seeking both return and stability during what remains a structurally favorable period for hardware-intensive AI infrastructure plays.
South Korean asset managers are at the forefront of capturing this trend. The "Korea Investment Global AI & Semiconductor TOP10 Fund" has recorded a cumulative return of 54.6% since its launch, with significant net inflows concentrated in overseas AI and semiconductor exposure during mid-year. Fund managers like Cha Hye at Korea Investment Trust Management's global quantitative division emphasize that global big tech firms' data center investment plans are proceeding regardless of external market factors, providing a structural tailwind for hardware-focused strategies. This conviction is reflected in substantial ETF asset growth: the "TIGER Semiconductor TOP10 Covered Call Active" ETF attracted 143.9 billion won, while the "KODEX Semiconductor Target Weekly Covered Call" ETF captured 154.4 billion won in recent inflows.
Portfolio construction reflects a tactical shift toward high-conviction semiconductor plays. Samsung Electronics and SK Hynix are positioned at the top of most portfolios targeting AI and semiconductor exposure. Samsung Asset Management's rebranding of its "KODEX AI Semiconductor" product to "KODEX AI Semiconductor TOP2 Plus," alongside competitor launches like "SOL AI Semiconductor TOP2 Plus," signals intensifying competition for leveraged semiconductor exposure, with these single-stock leveraged products attracting approximately 40,000 new investors despite regulatory warning signs.
Fund managers are employing momentum rotation and covered call strategies to manage volatility while maintaining long exposure to AI infrastructure megatrends. These approaches allow monthly or weekly portfolio rebalancing based on price momentum analysis, providing downside cushion in a period of elevated KOSPI 200 Volatility Index readings. According to Kim Seung, head of ETF investment at NH Asset Management, the strategic recommendation remains clear: maintain robust long exposure to AI and semiconductor megatrends, but use derivative overlays and tactical rotation to navigate near-term market dislocation. This disciplined approach has resonated with institutional allocators seeking both return and stability during what remains a structurally favorable period for hardware-intensive AI infrastructure plays.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.