Introducing KSMH – The xETFs Korea AI Semiconductor ETF

Artificial intelligence is driving a new semiconductor memory upcycle.

Every AI model runs on semiconductor memory chips. South Korea plays a critical part in this story.

The xETFs Korea AI Semiconductor ETF (Nasdaq: KSMH) is designed to provide investors with focused exposure to a portfolio of Korean companies powering the AI semiconductor value chain – all through a single ticker.

 

Why Korea Semiconductors?

Memory is one of AI’s key components. Training and running large AI models depends on enormous volumes of data being shuttled between memory and processors. When memory cannot keep pace, the chip remains idle while it waits. This has made High-Bandwidth Memory (HBM) among the scarcest and highest-margin products in the global race to build AI infrastructure.

Driven by the increased demand from the AI boom, the global memory market is projected to more than triple in 2026 (source: TrendForce as of May 2026). The demand may remain elevated well beyond 2026. On its fiscal Q3 2026 earning call, Micron stated that “it does not have line of sight as to when memory supply will be able to catch up with increasing demand.”[1]

Korea sits at a center of AI memory. South Korea is home to two global leaders in HBM: SK Hynix and Samsung. Together, they represent roughly 80% of global HBM sales as of Q1 2026, with SK Hynix alone representing 58%. And Korea’s leadership extends beyond its two largest memory manufacturers, as the country is also home to companies across the broader semiconductor ecosystem, including

  • Advanced packaging and packaging equipment
  • Substrates and PCBs
  • Semiconductor testing
  • Specialty materials
  • Wafer fabrication and process equipment

This leadership is reinforced by the Korean government’s strategic commitment to the semiconductor industry. On June 29, 2026, South Korean president Lee Jae Myung called the leaders of Samsung and SK Hynix “national heroes” as his government announced the two companies’ plans to invest [2].[3]

Seoul has further backed the industry with policy initiatives: In 2025, Seoul expanded a financial support package for the semiconductor industry to ₩33T, and increased tax credits on eligible semiconductor facility investments to 20% for large companies and 30% for SMEs.[4] Also in 2025, the government pledged to cover 70% of companies’ costs for underground transmission lines in Yongin and Pyeongtaek, two regions where Seoul is hoping to build “semiconductor clusters.” [5]

KSMH: Focused on Korea. Focused on Semiconductors.

The full Korean AI Semiconductor value chain in one ticker. KSMH spans Korea’s AI semiconductor value chain — from SK Hynix and Samsung, two anchors of the global memory industry, to packaging-equipment makers, substrate and PCB manufacturers, and testing, materials, and equipment companies that keep Korea’s fabs running. Rather than owning just the two headline memory names, KSMH aims to capture the whole ecosystem powering AI.

A fund built for one theme. KSMH is an actively managed ETF listed on Nasdaq that holds a portfolio of 10 to 25 Korean companies spanning the AI semiconductor value chain, with an estimated 20 companies at launch and a 20% cap on any single position.

KSMH provides focused access. Investors seeking exposure to Korea’s semiconductor industry have historically faced limited choices.

Country-focused Korea ETFs spread their exposure beyond semiconductors, including banks, autos, healthcare, and other unrelated sectors. Meanwhile, many semiconductor-focused ETFs are dominated by U.S. and Taiwanese companies.

Buying Korean stocks individually can also be difficult, as many require a foreign brokerage account, currency conversions, and individual trades for each name.

KSMH packages Korea’s AI semiconductor ecosystem into a single U.S.-listed ticker.

 

Korea Powers AI. Own It.

Artificial intelligence is reshaping the global economy, and Korea is a key center of one of its most important technologies: semiconductor memory. KSMH offers focused exposure to that opportunity - not through broad country or broad semiconductor ETFs, but through a portfolio dedicated to the Korean companies powering the AI semiconductor value chain, including memory, logic, manufacturing and infrastructure.

Learn more and view the prospectus at www.xetfs.com/ksmh

 

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s Prospectus and Summary Prospectus, which may be obtained by visiting www.xetfs.com/ksmh Read the Prospectus and Summary Prospectus carefully before investing.

New Fund Risk. The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision.

Single Country Risk. Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund.

Semiconductor Industry Risk. Competitive pressures may have a significant effect on the financial condition of companies in the semiconductor industry. The Fund is subject to the risk that companies that are in the semiconductor industry may be similarly affected by particular economic or market events.

An investment in the fund involves risk, including possible loss of principal. Exchange-traded funds (ETFs) trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF’s net asset value (NAV), and are not individually redeemable directly with the ETF. Brokerage commissions and ETF expenses will reduce returns. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. For a complete description of the fund’s principal investment risks, please refer to the prospectus.

Market figures are third-party estimates and not guarantees of future results. Certain information contained herein has been supplied by third parties. xETFs cannot guarantee the accuracy of any such information and does not represent that such information is accurate or complete.

Teucrium Investment Advisors, LLC serves as the Fund’s investment adviser and WallStreetX ETFs, Inc. DBA xETFs serves as the Fund’s sub-adviser. The Fund is distributed by PINE Distributors LLC, which is not affiliated with Teucrium Investment Advisors, LLC, xETFs, or any of their respective affiliates.

 

 

[1] Micron – company earnings call

[3] Source: Reuters

[4] Source: Reuters, Samil PwC

[5] Source: KBS World
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Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ Prospectus and Summary Prospectus, which may be obtained by visiting https://funds.xETFs.com/investor-materials. Read the Prospectus and Summary Prospectus carefully before investing.

Exchange Traded Concepts, LLC serves as the investment adviser. WallStreetX ETFs, Inc. dba xETFs serves as the sub-adviser. The Funds are distributed by Foreside Fund Services, LLC., which is not affiliated with xETFs, Exchange Traded Concepts, LLC, or any of its affiliates.

Investing involves risk, including possible loss of principal. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund’s investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund’s investments were more broadly diversified. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund.

A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.

Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times. Brokerage commissions will reduce returns.

Covered Call Strategy Risk. A covered call strategy involves writing (selling) covered call options in return for the receipt of premiums. By employing this strategy, each Fund’s upside participation is capped, meaning investors will not benefit from increases in the underlying reference asset above the exercise price of the options. However, investors remain exposed to the full downside risk, as the Fund continues to bear the risk of underlying reference asset price declines. The premiums received from the options may not be sufficient to offset any losses sustained from underlying reference asset price declines over time. In rapidly rising markets, the Fund may significantly underperform the underlying reference asset, as gains above the exercise price are forfeited. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. Exchanges may suspend the trading of options during periods of abnormal market volatility. Suspension of trading may mean that an option seller is unable to sell options at a time that may be desirable or advantageous to do so.

Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include: (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. Such prices are influenced by numerous factors that affect the markets, including, but not limited to: changing supply and demand relationships; government programs and policies; national and international political and economic events, changes in interest rates, inflation and deflation and changes in supply and demand relationships. Trading derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities. Derivative contracts ordinarily have leverage inherent in their terms. The low margin deposits normally required in trading derivatives, including futures contracts, permit a high degree of leverage. Accordingly, a relatively small price movement may result in an immediate and substantial loss. The use of leverage may also cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet collateral segregation requirements. The use of leveraged derivatives can magnify potential for gain or loss and, therefore, amplify the effects of market volatility on share price.

There is no guarantee that the Fund will be successful in its attempt to pay weekly distributions, which are not guaranteed and may be modified or discontinued at any time. A distribution may consist of a return of capital, ordinary income, qualified dividend income, and /or capital gains. A return of capital is a distribution that exceeds the Fund’s current and accumulated earnings and profits and is not taxable as current income. Instead, it reduces an investor’s tax basis in their shares and may result in a higher capital gain or lower capital loss when the shares are sold.

There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment. There is no guarantee that the Fund will be successful in its attempt to pay weekly distributions or consistent exposure to NVDA or TSLA. An investment in the Fund is not an investment in NVDA or TSLA. The Fund’s strategy will not capture all potential gains if NVDA’s or TSLA’s share price increases in value. The Fund’s strategy is subject to all potential losses if NVDA’s or TSLA’s share price decreases in value, which may not be offset by premium income received by the Fund.