KB Asset Management has chosen an ETF that invests in the theme of 'Artificial Intelligence (AI),' which is currently the most optimized theme for the market situation, as its first product after changing its ETF brand name to ‘RISE ETF’.
On the 23rd, KB Asset Management announced the launch of the ‘RISE US AI Value Chain TOP3 Plus ETF’.
The ‘RISE US AI Value Chain TOP3 Plus ETF’ differentiates itself from existing AI-themed ETFs by being the first in Korea to structure the product with representative stocks from each AI value chain segment. While there are various AI-themed products in Korea, most focus on specific categories such as AI semiconductors, on-device AI, or AI power.
The ‘RISE US AI Value Chain TOP3 Plus ETF’ divides the AI value chain into ‘Hardware,’ ‘Software,’ and ‘Services & Infrastructure,’ selecting 5 stocks from each sector for a total of 15 stocks. It invests nearly half (45%) by allocating 15% to each category’s representative stocks, and the remaining 4 stocks are invested in equally with a weight of 4.58% each.
As of the 21st of this month, the major investment stocks include Oracle (15.22%), Microsoft (15.13%), Nvidia (13.98%), Palantir Technologies (5.42%), and Salesforce (5.10%).
According to global market research firm Precedence Research, the global AI market size, which was approximately $454.1 billion in 2022, is expected to grow at an average annual rate of about 19%, reaching around $2.5751 trillion by 2032.
While the AI market has so far shown remarkable growth centered on hardware companies represented by Nvidia, it is expected that the growth benefits will expand across the entire AI value chain with high industrial relevance, including semiconductors, software, cloud, cybersecurity, and data centers.
The total expense ratio of the ‘RISE US AI Value Chain TOP3 Plus ETF’ is 0.05% per year, which is the lowest level compared to the average total expense ratio (0.43% per year) of AI-related ETFs listed in Korea.
Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, "The ‘RISE US AI Value Chain TOP3 Plus ETF’ is a product that allows diversified investment in representative stocks across the three categories of the AI value chain, rather than focusing on a specific AI sector." He added, "For investors interested in the AI industry, we recommend steady investment through installment savings using pension accounts and Individual Savings Accounts (ISA) with low total expenses."
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