UAE investors could soon gain access to South Korea’s semiconductor industry through the planned cross-listing of two New York Stock Exchange (NYSE) listed exchange-traded funds (ETFs) on the Abu Dhabi Securities Exchange (ADX) as early as next week. The Korea Manufacturing Core Alliance Index ETF (KMCA) allocates 45.05% of its portfolio to Samsung Electronics and SK Hynix, two major players in the global semiconductor and memory chip industries.
The PLUS Korea Defense Industry Index ETF (KDEF) will also be cross-listed, offering exposure to South Korean defence contractors and aerospace companies. Both funds already trade on NYSE Arca in the United States. Their planned ADX cross-listings would expand UAE investors’ access to these specialised South Korean equity strategies.
The announcement follows comments by ADX CEO Abdulla Salem Alnuaimi at the Arab Federation of Capital Markets (AFCM) conference that the exchange expected three to four additional ETF listings before the end of 2026.
ADX expects further ETF listings before year-end
ADX CEO Abdulla Salem Alnuaimi expects three to four additional ETF listings before the end of 2026, as the exchange looks to broaden its investment offerings and attract more funds.
The planned KDEF and KMCA listings would contribute to this expansion, adding two specialised South Korean equity strategies to the exchange. The expected listings form part of ADX's wider efforts to expand its ETF offering and access to international markets.
Read more about ADX's plans for additional ETF listings before year-end.
KDEF targets South Korea's defence industry
KDEF tracks the Korea Defense Industry Index and invests in South Korean companies involved in defence equipment, aerospace and military technology. The strategy provides targeted exposure to a sector influenced by defence budgets, procurement contracts and international export demand.
Its industry focus also exposes investors to changes in government spending, export restrictions, geopolitical developments and company-specific risks. As of 21 October 2026, KDEF reports net assets of $93.47 million across 20 holdings. Its annual operating expenses are 0.65%.
KMCA Brings Samsung and SK Hynix Exposure to ADX
The Korea Manufacturing Core Alliance Index ETF (KMCA) offers exposure to South Korea’s advanced manufacturing industries, with a substantial allocation to semiconductors and memory chips. Samsung Electronics accounts for 24.36% of the portfolio, while SK Hynix represents 20.69%. Together, the two companies make up 45.05% of the fund’s assets, making their performance a key driver of its returns.
Both companies are important to the global semiconductor supply chain, particularly as demand for AI-related computing and memory continues to shape the industry. However, this concentration also exposes investors to fluctuations in chip demand, technology spending, competition and semiconductor valuations.
KMCA also invests in rechargeable batteries, shipbuilding, defence, power grids, nuclear energy and robotics, providing exposure to other strategic manufacturing industries. As of October 21, 2026, the fund reported net assets of $4.98 million across 35 holdings, with annual operating expenses of 0.65%.
The planned ADX cross-listings would give UAE investors another route to access this portfolio, subject to the final local trading arrangements.
Fund details and portfolio holdings
Source: PLUS ETF fund disclosures dated 21 October 2026.
Concentration in the five holdings
The funds' largest positions account for a significant share of their portfolios. The following figures show the weight of the five largest holdings in each fund.
Source: Fund holdings files dated 22 October 2026. Percentages represent portfolio weights and may change over time.
These allocations highlight the importance of individual company performance. KDEF has substantial exposure to Hanwha Aerospace and other defence contractors, while Samsung Electronics and SK Hynix together represent 45.05% of KMCA's portfolio. Investors should consider these concentrations when assessing company-specific and sector risks.
How have the funds performed?
Performance data to 30 September 2026 show different results for the two funds. KDEF has a longer operating history and a substantial cumulative gain since inception, while KMCA has declined since its May launch.
Source: PLUS ETF performance disclosures as of 30 September 2026. Returns for periods shorter than one year are not annualised.
KDEF reports a cumulative NAV gain of 116.13% since inception, alongside a negative 8.30% one-year return and a negative 3.47% year-to-date return. KMCA's year-to-date and since inception returns are both -9.62% in the reported data. Its shorter operating history means a one-year return is not available. Past performance does not guarantee future results.
These figures relate to the existing US-listed funds and do not represent returns earned by investors trading through ADX.
Technology volatility adds context.
Recent volatility in technology stocks provides additional context for KMCA. On 20 October, South Korean AI cloud provider Elice Group fell approximately 32% on its stock market debut, renewing concerns about valuations and financing across the AI infrastructure sector. CoreWeave shares had also fallen approximately 24% from 9 October amid investor concerns about debt and financing costs, as discussed in Nukoud's report on CoreWeave and Elice.
These developments highlight changing sentiment around AI infrastructure and technology valuations. For KMCA, semiconductor demand, AI spending expectations and the performance of its underlying holdings are more direct considerations.
What the listings mean for UAE investors
The planned listings would broaden the range of international thematic ETFs available through ADX. Investors could access baskets of South Korean companies through a single fund rather than purchasing each constituent separately, subject to the final local trading arrangements.
Trading volumes, bid and ask spreads, settlement procedures and pricing on ADX may differ from those on NYSE Arca. Investors should review the final exchange disclosures for details on trading currency, market makers and applicable charges.
The listing is awaiting the final listing resolution, which could come out this week, paving the way for a 2nd November 2026 launch. The listings would add two specialised South Korean equity strategies to ADX. Their performance and trading experience for UAE investors will depend on the underlying holdings, market conditions and liquidity on the local exchange. Investors should consult the final listing disclosures for confirmed trading arrangements and other relevant details.
