The analyst prefers the new memory ETF $DISK over $DRAM due to its more diversified composition and would construct a memory ETF closer to $DISK with higher concentration in NAND names like Kioxia and Sandisk.
$DISK is more diversified than $DRAM, which is heavily concentrated in the big three memory companies. The analyst dislikes $DISK's underweighting of Micron and $DRAM's underweighting of Sandisk but overall favors $DISK's composition.
$DISK is a new memory ETF that just launched last week. By Tema ETFs (in partnership with SemiAnalysis). Top 10 holdings: 1. Kioxia: 17.10% 2. $SNDK: 16.81% 3. Samsung Electronics: 8.01% 4. SK Hynix: 7.45% 5. SK Square: 5.24% 6. Innodisk: 5.13% 7. $MU: 4.70% 8. $WDC: 4.67% 9. Seagate Technology: 4.54% 10. Nanya Technology: 4.36% Way more diversified than $DRAM, which has over 75% in the big three of Micron, SK Hynix, and Samsung. And then a long tail of similar names from Sandisk to Kioxia to Western Digital. Personally don't like how underweight $DISK is on Micron. And how underweight $DRAM is on Sandisk. Don't think you can go wrong with either tbh, but if I was to construct a memory ETF, the composition would be closer towards $DISK. I.e. slightly higher concentration NAND w/ Kioxia and Sandisk.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -4.7% | -4.2% |
| 1 week | -4.8% | -4.6% |
| 1 month | — | — |
| 3 months | — | — |
| 6 months | — | — |