What are the differences among several chip ETFs?

Recently, a media report about “7nm chips” has ignited the market, refocusing attention on the chip sector, which has recently experienced a proper correction.

Currently, there are many chip-related indices in the market, which is related to the numerous upstream and downstream links in the chip industry chain. Different indices build their stock selection scope based on their specific focus.

For example, the CSI Chip Industry Index selects 50 stocks from the Shanghai and Shenzhen markets involved in chip design, manufacturing, packaging, and testing, as well as those providing materials or equipment such as semiconductor materials, wafer production equipment, and packaging testing equipment. Digital chip design accounts for 51%, semiconductor equipment 20%, and integrated circuit manufacturing 10%.

Another related index is the Shanghai Stock Exchange Sci-Tech Innovation Board (STAR Market) Chip Index, which has a similar industry distribution to the CSI Chip Industry Index but selects stocks from the STAR Market, offering somewhat greater flexibility.

Yet another is the Shanghai Stock Exchange STAR Market Chip Design Index, focusing on digital chip design and analog chip design, excluding equipment, materials, and other segments, with a more vertical and specialized focus.

Table: Top three industry weights and proportions in the three indices

Data source: Wind, as of March 16, with industry distribution based on Shenwan’s tertiary industry classification.

Currently, there are chip ETFs such as E Fund (516350, connection funds A/C: 018411/018412), STAR Market Chip ETF by E Fund (589130, connection funds A/C: 020670/020671), and STAR Market Chip Design ETF by E Fund (589030) tracking these indices.

Risk warning: Funds are subject to risks; investment should be cautious.