The Roundhill Memory ETF (CBOE: DRAM) has suffered a big pullback this month, falling by 25% from its all-time high, as key risks in the memory industry starts to unfold.
DRAM, which was launched in April, is still up by 125% from its record low, with its assets under management (AUM) at $22.16 billion. It has become the fastest-growing ETF to cross the $20 billion milestone.
Its growth is primarily driven by strong demand for memory products and chips, with its constituent companies posting some of the strongest growth metrics in the corporate sector.
Key DRAM ETF Risks are Starting to Unfold
While the Roundhill Memory ETF has done well this year, it is also facing substantial risks that are starting to unfold today. Its main risk is concentration, where the top three constituents – Micron, Samsung, and SK Hynix – account for 75% of the fund.
