Korea Investment Trust Management announced on the 13th that individual investors have been steadily net buying the 'ACE US Big Tech TOP7 Plus Exchange-Traded Fund (ETF)'.
According to the Korea Exchange, individual investors have net purchased more than 50 billion KRW of the ACE US Big Tech TOP7 Plus ETF since the beginning of this year. They recorded net buying for 42 consecutive trading days from January 10th to the previous day.
The ACE US Big Tech TOP7 Plus ETF is a product based on the 'Solactive US Big Tech Top7 Plus PR Index'. The constituent stocks are the top 10 big tech companies by market capitalization listed on the US Nasdaq Stock Exchange, with a concentrated investment in the Magnificent 7 (M7) stocks.
As of the previous day, the top holdings of the ACE US Big Tech TOP7 Plus ETF include ▲NVIDIA (22.34%) ▲Amazon.com (15.91%) ▲Microsoft (14.81%) ▲Google (Alphabet A, 13.27%) ▲Apple (12.78%) ▲Meta Platforms (12.70%) ▲Tesla (6.95%).
The M7 stocks led the Nasdaq rally last year with an average stock price increase of 111.27%. Although there have been debates about a peak this year, some analyses suggest these stocks are undervalued, leading to net buying by individual investors.
Recently, JP Morgan, the largest bank in the US, evaluated in an analysis report that compared to other stocks in the Standard & Poor's (S&P) 500, M7 stocks are rather undervalued. They also added that since M7 led a significant portion of last year's stock price increase, this trend is expected to continue this year.
Kim Seung-hyun, ETF Consulting Manager at Korea Investment Trust Management, said, "There have been some recent corrections along with valuation debates on the M7 stocks that showed a sharp rise last year," adding, "The continuous growth of big tech companies driven by the spread of artificial intelligence (AI) technology cannot be denied." He continued, "Through the ACE US Big Tech TOP7 Plus ETF, investors can make concentrated investments in M7 stocks, which have grown beyond a simple growth theme based on solid profit growth structures and aggressive investments."
The ACE US Big Tech TOP7 Plus ETF is a performance dividend product, and past performance does not guarantee future results. Also, principal loss may occur depending on management outcomes.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
