Hantoo Asset Management "ACE Nvidia Value Chain Active ETF, Sold Out on First Day of Listing"

Korea Investment Trust Management announced on the 12th that the ACE Nvidia Value Chain Active Exchange-Traded Fund (ETF) was fully subscribed on its first day of listing.

The ACE Nvidia Value Chain Active ETF is characterized by investing in companies related to artificial intelligence (AI) semiconductors centered around Nvidia. According to the Export-Import Bank of Korea, the AI semiconductor market is expected to grow at an average annual rate of 21.6%, from $41.1 billion in 2022 to $133 billion in 2028. Investors appear to have purchased the entire initial listing amount of 8 billion KRW on the first day the ACE Nvidia Value Chain Active ETF was listed. The trading volume on the listing day exceeded 1.6 million shares, more than twice the number of listed shares.

There was also significant inflow of funds from individual investors. According to the Korea Exchange, individuals net purchased 8.4 billion KRW worth of the ACE Nvidia Value Chain Active ETF. This is the largest net purchase amount by individual investors among ETFs listed on the KOSPI market (excluding inverse ETFs). The combined net purchase amount by individuals for the four ACE Value Chain Active ETF series, which were listed on the same day as the ACE Nvidia Value Chain Active ETF, surpassed 10 billion KRW. The ACE Nvidia Value Chain Active ETF attracted considerable attention.

The ACE Nvidia Value Chain Active ETF allows concentrated investment in the AI semiconductor industry through a single ETF. This ETF includes Nvidia, a representative company in the AI semiconductor industry, at about 25%, while the remaining approximately 75% is invested in value chain companies related to Nvidia. As of the listing day, the top holdings were Nvidia (24.01%), ARM (19.99%), TSMC (9.99%), SK Hynix (9.98%), and ASML (4.52%), in that order.

The selection of constituent stocks reflects market dominance, representativeness, technological capability, and growth potential. The fund management team, led by Hyuntae Kim, Head of Global Quantitative Management at Korea Investment Trust Management, analyzes stocks and constructs the portfolio through operational strategy meetings. After inclusion, post-management is conducted through volatility monitoring and risk exposure analysis.

Hyuntae Kim said, "Since we have strengths in global fund management, it seems many investors showed interest in the ACE Nvidia Value Chain Active ETF." He added, "The AI big tech industry led by big tech companies is expected to maintain a steady high growth rate. We recommend holding it long-term in defined contribution (DC) retirement pensions, personal pensions, or Individual Savings Accounts (ISA) that offer tax benefits."

The ACE Value Chain Active ETF series are performance dividend-type products, and principal loss may occur depending on the management results.