Roundhill Memory ETF (DRAM) recently became one of the hottest AI-focused exchange-traded funds (ETFs) on the market, but the ETF pulled back sharply on Tuesday as investors took profits in memory and storage stocks tied to the AI boom. The ETF dropped alongside weakness in major holdings such as Micron (MU) and SanDisk (SNDK), both of which had rallied significantly in recent months due to growing AI infrastructure demand.
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Forget margin or options. Here's how the pros trade STXAnother issue that weighed on the memory sector today came from South Korea, where political discussion surrounding AI profits sparked fresh investor concerns. According to reports from The Korea Herald, chief of staff Kim Yong-beom proposed that South Korea impose a special tax on AI companies to fund a “national dividend.” The proposal aims to ensure that excess profits generated during the AI boom are shared across the country instead of being concentrated among major companies.
DRAM ETF Top Holdings
The Roundhill Memory ETF is heavily concentrated in global memory and storage companies tied to AI demand. Its largest holding is SK Hynix (HXSCL) at 26.37%, followed by First American Funds Inc X Government Obligations Fund (FGXXX) at 20.60%, and Samsung Electronics (SSNLF) at 20.42%.
Other notable holdings include:
Several of these holdings have posted massive gains over the past year due to the AI-driven memory boom, with SanDisk up nearly 3,600% and Micron up more than 720% over the past 12 months.
How Did Today’s News Affect Roundhill Memory ETF?
Roundhill Memory ETF was down 10.84% on Tuesday alongside the broader AI stock drop. However, the ETF has still increased 81.07% since it was launched earlier this year. While this pullback may be concerning to some, recent bullish analyst coverage of the AI sector suggests it could present a strong buying opportunity for DRAM.
