r/valueinvesting
Is DRAM a value play?
Author asks if the new Defiance Memory ETF, holding major memory stocks, is a good value play despite its 0.68% fee and AI premium.
- Memory sector could be a value play as AI hype settles
- ETF offers diversified exposure to global memory leaders
- AI premium might already be priced into memory stocks
- New ETF has a high 0.68% expense ratio and tracking drag
Its a new ETF only created by Defiance Memory on the 18th of june and share price is $8.27. It was created after the AI and this is priced in already. The ETF is still adding to its holdings but its current holdings is:
Kioxia Holdings Corp - 14.88%
Micron Technology - 13.18%
Sandisk - 12.60%
Western Digital - 11.52%
SK Hynix - 11.40%
Seagate Technology - 11.14%
Samsung - 10.07%
The ETF also holds smaller holdings such as Rambus (3.01%) and Silicon Motion Technology (1.95%). The fund is weighted heavy towards North America (50%) and Asia (40%) with a smaller allocation to Europe. Because its a new ETF there is a current drag and the total expense ratio for the fund is (0.68%). What are your thoughts?