KB Asset Management Launches ‘RISE US AI Tech Active ETF’

On the 26th, KB Asset Management will launch an actively managed artificial intelligence (AI) related exchange-traded fund (ETF) called ‘RISE US AI Tech Active’.

The RISE US AI Tech Active ETF targets the rapidly growing AI industry by investing in global core companies in the hardware, software, and services & applications sectors. It features differentiated investments through an active strategy, aiming for excess returns by actively discovering stocks and adjusting the portfolio.

The fund will be managed by Manager Lee Sang-yeop, a 7-year veteran who also manages KB Asset Management’s flagship fund, the ‘KB US Representative Growth Stock Fund.’ He has proven expertise in US and global growth stock investments.

The KB US Representative Growth Stock Fund (UH) has posted a year-to-date return exceeding 43%, outperforming its benchmark of 37.37%.

Fifty percent of the RISE US AI Tech Active ETF portfolio invests in big tech companies that have recently led the US stock market, similar to other funds investing in US tech companies. The remaining 50% is allocated to next-generation companies expected to lead the US stock market in the future, with differentiated investments.

The big tech companies include the M7 stocks leading the US stock market, such as NVIDIA, a GPU manufacturer essential for AI model training and execution; Microsoft, a leader in cloud platforms; and Alphabet (Google), which drives innovation in data and algorithms.

Next-generation AI companies include ARM Holdings, a multinational semiconductor and software design company; Coinbase, a cryptocurrency trading platform; and Palantir, which provides big data analytics platforms, drawing attention.

The global AI market is projected to grow at an average annual rate of 33% until 2032, reaching a scale of $1.6 trillion. In particular, hardware such as GPUs that support AI model development and execution, infrastructure like cloud platforms, and software providing AI services are recognized as the main pillars driving market growth.

Manager Lee Sang-yeop of KB Asset Management said, "The ‘RISE US AI Tech Active ETF’ is a product that allows proactive investment in innovative AI tech companies that will follow NVIDIA," and added, "We will provide new opportunities to investors based on active responsiveness in the rapidly changing global AI market."