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Semiconductor ETF posts biggest 1st day in ASX history

By Michael Karpathios
4 minute read

A new megatrend ETF, launched on the ASX on Tuesday, has posted the highest first-day trading value of any passive ETF in history, surpassing the $5 million mark.

The ETF “SEMI” (ASX: SEMI) was launched on the exchange on Tuesday by ETF Securities, which invests in the largest and most significant semiconductor companies on the market.

Specifically, the ETF tracks the Solactive Global Semiconductor 30 Index – a portfolio of 30 companies within the developed market, alongside firms from Taiwan and South Korea, which are active across the semiconductor value chain. 

The index has advanced more than 56 per cent over the last 12 months to August and is up more than 23 per cent year-to-date.


ETF Securities head of distribution Kanish Chugh was not surprised by SEMI’s enthusiastic market welcome. 

“The semiconductor sector is possibly a more mature megatrend than some but there can be little doubt it is also destined to be an enduring one given its ubiquity in modern life,” he said.

“It has been pleasing also to see the great level of support we have seen from direct investors. This is a strong reflection of the increased uptake of ETF investing shown in the ASX report and illustrated how investors are comfortable using ETFs to access megatrend investments.”

SEMI will add to Australia’s blossoming ETF market – recently valued at more than $115 billion by an ASX Australian Investor Study

“The study found that ETFs were especially popular among younger investors, with 8 per cent of young, first-time investors choosing to launch their investing journey by investing in an ETF,” said ASX investments product manager Andrew Campion in a recent ASX post.

“Overall, 20 per cent of next generation investors hold ETFs, with 16 per cent of this cohort having bought ETFs in the 12 months leading up to our survey. This compares to 24 per cent of next generation who had chosen to invest in shares.”

Semiconductors have been a theme on the lips of many investors through the pandemic, particularly as the industry continues to be hamstrung by a global shortage. A number of wealth managers have hailed the appeal of the megatrend ETF.

“SEMI provides access to another great global investing thematic and one that is undergoing a particularly attractive supply demand rebalance. Our clients were first day investors,” said Thomas Pickett-Heap, a senior private wealth manager at Ord Minnett.

Dane Jensen, a wealth adviser from Positive Dynamics, added: “We see SEMI as an extremely efficient and effective pathway for exposure to an ongoing megatrend, one that is up there with AI, battery technology and decarbonisation.

“The demand for ETFs generally from our client base is significant and growing rapidly, with the liquidity, transparency and transactability driving interest and demand.”

The ETF market broke its record for monthly inflows in July, receiving $2.8 million.