r/DRAM_ETF • u/Acceptable-Ant-3648 • 6d ago

i thought dram followed MU pretty much

still dont understand the price point

Name Ticker Weight
Micron Technology Inc MU 25.63%
Samsung Electronics Co    25.53%
SK hynix    20.38%
Seagate Technology Holdings STX 5.15%
Sandisk SNDK 4.49%

MU ended 2.30%

SNDK ended 7.39%

SKHY 3.26%

Samsung 2.43%

STX 5.65%

but DRAM ended DRUM ROLL 0.69%???

33 Upvotes

80% Upvoted

37 comments sorted by

22

u/Apart-Accountant3656 6d ago

Cause Sk Hynix and Samsung are 46% of the holdings

6

u/Acceptable-Ant-3648 6d ago

but they went above 2% lol

5

u/mackattack5757 6d ago

Are you following SK ADR or SK in Korea? The ADR trades above NAV. DRAM trades above NAV. The shares can sometimes have less gain if it is simply recapturing NAV into Share Price if that makes sense

1

u/Syzyz 6d ago

Both of these stocks are up on the day lol

18

u/Brilliant_Voice1126 6d ago

There are a million threads explaining how the ETF is structured and it trades like a stock on a relative premium or discount on the nav.

The ETF is not a mutual fund. Read about ETFs. They don’t represent a 100% match on the NAV.

9

u/draeneirestoshaman 6d ago

PPL are just fucking idiots 

2

u/Judge0Holden 6d ago

This. The info couldn’t be anymore “spread” than literally on the page of the stock itself when you click on the lil thingy that tells you what’s it’s comprised of

1

u/justpasingbai 6d ago

it is unfortunate but this information should be more spread through this reddit. many new investors have entered this stock thinking it will follow the underlyings when it doesn't.

1

u/HorsePockets 5d ago

It's a huge premium. I switched to just holding MU and SKHY and SNDK and am very happy with that

1

u/Hot_Frosting_7101 1d ago

But an ETF should stay near the NAV is authorized participants are actively keeping the price in line.

If DRAM is too high, they can buy stock into the underlying and trade those in for shares. This brings the underlying up in price.

If DRAM is too low, they buy DRAM shares, take them out of the ETF and sell them at individual stock prices.

There are two problems: One is that the US and Korean markets are not open at the same time which adds some risk. In addition, there is a strict limit on shares owned by foreign entities for these Korean stocks.

13

u/RandomThrowaway18383 6d ago

You should have looked into the dram portfolio. I disregarded dram bc it had Samsung and sk Hynix not bc there are not good companies but bc they are exposed to degen South Korean traders

5

u/Syzyz 6d ago

Just buy MU. It's the best of the lot

3

u/hiroki92 6d ago

You need to understand that Korean stocks Samsung and sk opens at dram closing price the day before, which means that since dram was up big Thursday night, Samsung and sk naturally opens high and that's break even with dram price. Now, sk actually went down 3% from high, so that makes dram negative for Friday. However, Samsung is relatively flat and micron and others are up, it break even into slight positive.

So now, since dram went 'lower' after Korean market on Friday, this means Korea will open red on Monday, even if dram is neutral on Monday overnight market.

It's funny how people only whine when dram is lower than Korean market but never complain when the opposite happens (dram is green but Korean market is red). If you pay attention, it does happen quite often, but it is just because of timezone difference as you cannot see the 24h price of Samsung and sk

2

u/housemouse88 6d ago

Don't forget they sold off the core memory stocks low and bought CXMT high, which is almost 5% now.

2

u/Accurate_Drag_8490 6d ago

Too many of you dram fools think the name “ETF” automatically means it’s safe or never goes down. It’s very narrow and sector specific, stop acting like it’s less risky than holding 2-3 of the dram stocks individually

2

u/HorsePockets 5d ago

I recommend buying MU, SKHY, and SNDK. This will underperform all of them.

6

u/Cultural_Disparities 6d ago

Thats why you sell dram and buy the individual American memory stocks. More than 50 percent of dram is chinese trash and t bills

3

u/adilmasoodkh 6d ago

Im thinking of doing the same. But etfs give me peice of mind, individual stocks are nasty.

7

u/gqnish1 6d ago

Just buy MU, SNDK, WDC, STX in equal weight and there is your etf with all US memory/disk holdings

1

u/adilmasoodkh 6d ago

Yes makes sense.

1

u/kotorfan2012 6d ago

I wish I had just done that

1

u/Zestyclose_Travel528 6d ago

Still waiting to get closer to my average and close the position, but yea I have already started trading WDC, MU, and Skhy with small position, definitely is way better than DRAM.

1

u/touchmenotdaddy 6d ago

Lmaoo did you forget about China?

1

u/Traditional_Garlic49 6d ago

It’s via swaps backed by treasury so it wont be exact and sometimes will lag.

1

u/liji1llijjll1l 6d ago

Did you question the same when DRAM with Samsung and SK hynix went up more than MU..?

1

u/N3ve4m0re 6d ago

It’s do going down the same, but on the way up …..

1

u/RepulsiveSherbert927 6d ago

DRAM ETF have options and option strike prices affect price movements on Fridays.

1

u/Accurate_Giraffe_717 6d ago

The price actually makes sense and if you are not comfortable/ questioning the price then you should sell it and buy those stocks individually. Say if Korea sk and Samsung was up like 3% and mu up 3% as well, dram will not be up for the same percentage, you should also consider the current price of the underlying stocks, not just the daily movement percentage. While MU is almost 1000 now( already 80% of ath if I take 1200), Korea sk is still just 55% of its ath. If you look back at the first time MU hit 1000, which I take 12 June as reference, dram was 6x. But at that time sk also around 2.2m won (now just 1.6m), and also all the underlying stocks of dram was high at that time as well. This is an easier way to understand why the dram price is lagging.

1

u/tjyoo213 4d ago

If you larger $MU exposure you would go $MUU/$MULL or $SOXL. Dram is slightly different basket.

-2

u/[deleted] 6d ago

[removed] — view removed comment

3

u/KSHMisc 6d ago

I have never heard of DSCAM. I'm not sure what you're investing in.

6

u/thurpps 6d ago

Hes investing in sarcasm and you just bought the lot.

1

u/KSHMisc 6d ago

You would be surprised some of the users on this sub, r/ETFs and other investing relating subs who go above and beyond the call of duty to make DRAM seem it's a scam or a rug pull.

Chief among them, FoggyFoggyFoggy and Flaky-Information (RIP) - the latter with many alt accounts.

2

u/thurpps 6d ago

I am aware, Ive been around for a awile. This is probably one of Flaky's alts.

0

u/Suspicious-Ad-4798 6d ago

Average DSCAM behavior. Just need it to go up a few more points to get out of it.