Roundhill's DRAM ETF Pulls In $1.1 Billion in 1 Day, Topping $5 Billion Since Launch
Updated
Updated · CNBC · May 8
Roundhill's DRAM ETF Pulls In $1.1 Billion in 1 Day, Topping $5 Billion Since Launch
3 articles · Updated · CNBC · May 8
$1.1 billion flowed into Roundhill's DRAM ETF on Thursday, lifting assets raised since its April 2 debut to more than $5 billion after just 23 trading sessions.
AI memory shortages are driving the rush: Roundhill says DRAM chips are the key bottleneck for AI buildouts, with supply constraints likely to last years rather than quarters.
The fund has also surged 70% since launch as top holdings including Micron and Sandisk hit records, reinforcing demand from investors chasing the memory trade.
90,000-plus options contracts traded in DRAM on Thursday, putting it in the top 40 U.S. ETFs by options volume as call buying ran at nearly twice put volume.
Access to South Korea's SK Hynix and Samsung Electronics has broadened its appeal for U.S. investors, who otherwise get limited exposure through broader Korea or semiconductor funds.
As retail investors fuel its meteoric rise, is the DRAM ETF a savvy AI investment or a speculative bubble?
Does this ETF's success mask a critical vulnerability in America's AI supply chain, which heavily relies on South Korean firms?
AI Memory Bottleneck Ignites DRAM ETF: 8.7% Launch Rally Signals New Era for Semiconductor Investing
Overview
Before the launch of the DRAM ETF, investors wanting to benefit from memory stock trends had to use broader funds like the iShares MSCI South Korea ETF, which only offered indirect exposure since Samsung and SK Hynix made up over 40% of its portfolio. There was a clear need for direct, pure-play access to the memory sector, which was not available until Roundhill Investments recognized this demand and introduced the DRAM ETF. This new ETF quickly attracted attention by providing focused exposure to memory stocks, filling a gap in the market and changing how investors approach the memory industry.