Hantoo Asset Management, 'ACE US Big Tech TOP7 Plus ETF'... Continued Net Buying by Individuals

Korea Investment Trust Management announced on the 20th that the individual net buying trend of the ACE US BigTech TOP7 Plus Exchange-Traded Fund (ETF) has continued for a month.

According to the Korea Exchange, individual investors have net bought the ACE US BigTech TOP7 Plus ETF for 22 consecutive trading days from the 20th of last month to the 19th of this month. The cumulative net buying amount recorded by individual investors during this period was 52.1 billion KRW. Since the beginning of the year, a net inflow of 138.4 billion KRW from individual investors has been recorded, resulting in the net asset value surpassing 300 billion KRW on the 14th. The current net asset value stands at 349.4 billion KRW, representing a 376.49% increase compared to the beginning of the year.

The ACE US BigTech TOP7 Plus ETF includes the top 10 big tech companies by market capitalization listed on the US Nasdaq Stock Exchange. It particularly concentrates about 95% of its investment in the top 7 companies, with the underlying index being the Solactive US BigTech TOP7 Plus PR Index. As of the previous day, the major holdings include △NVIDIA (18.91%) △Apple (15.99%) △Google (Alphabet A, 14.67%) △Microsoft (13.34%) △Amazon (12.74%) △Broadcom (11.59%) △Meta Platforms (8.20%).

The ETF’s performance is also excellent. Its returns are 48.80% over six months and 49.36% year-to-date, ranking first among big tech investment ETFs. The portfolio construction and rebalancing (adjusting stock weights) according to market conditions appear to have effectively driven the returns. In the rebalancing conducted on the 2nd of last month, the weighting of Broadcom, benefiting from the artificial intelligence (AI) industry, was increased from 1.72% to 9.66%. Since the rebalancing, Broadcom’s stock price surged by 45.53%.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, said, “With the era of tech stocks arriving, big tech companies such as NVIDIA, Apple, Microsoft, and Google are expected to secure a dominant advantage alongside the AI trend.”

He added, “Since a long-term big tech investment trend is anticipated, we recommend investing through long-term and installment methods in pension accounts. ACE ETFs offer a variety of products investing in big tech, including covered calls and value chain-focused investment strategies, so we hope investors expand their big tech investment options with ACE ETFs.”