Korea Investment Trust Management announced on the 10th that it has completed the regular asset reallocation (rebalancing) of five ACE Value Chain Active Exchange-Traded Funds (ETFs).
The products include ▲ACE Tesla Value Chain Active ETF ▲ACE Nvidia Value Chain Active ETF ▲ACE Google Value Chain Active ETF ▲ACE Microsoft Value Chain Active ETF ▲ACE Apple Value Chain Active ETF.
The rebalancing was conducted by leveraging the characteristics of active ETFs. The portfolio was adjusted in line with rapidly changing industries and market environments amid international geopolitical conditions.
The ACE Tesla Value Chain Active ETF reallocated assets focusing on the autonomous driving market following the re-election of former U.S. President Trump. It anticipated that Tesla’s core business would shift from hardware-centered areas such as batteries and automobiles to software-centered areas like autonomous driving programs, and utilized this in its management strategy. Palantir Technologies and XOVR ETF, classified as autonomous driving-related stocks alongside Tesla, were newly included. The XOVR ETF is known to include SpaceX.
According to the Korea Exchange on the 9th, the ACE Tesla Value Chain Active ETF recorded a 6-month return of 33.66% and a 1-year return of 54.29%. During the same period, it outperformed its benchmark index by 13.83 percentage points (P) and 40.10P, respectively. It also showed a net asset increase of 526.1 billion KRW over the past year.
The ACE Nvidia Value Chain Active ETF built a new portfolio reflecting Nvidia’s ‘Artificial Intelligence (AI) integrated platform strategy.’ It focused on business expansion encompassing server products and AI software necessary for AI construction and utilization, beyond simple semiconductor investments. Partner companies evaluated by Nvidia as next-generation AI growth drivers, such as Sub Robotics and SoundHound, were added to the portfolio.
The ACE Google Value Chain Active ETF concentrated on Google’s growth, which is strengthening its position related to quantum computers. It invests intensively in Google, which has established itself as a leader in innovative AI software and quantum computing technology with the release of the Willow chip. Additionally, value chain companies such as IonQ, Rigetti Computing, and D-Wave Quantum, which can grow alongside quantum computers, were newly included.
The ACE Microsoft Value Chain Active ETF conducted rebalancing with a focus on the AI software sector. It invests in Microsoft, which has proven revenue within the AI industry. At the same time, it adopts an investment strategy to increase the weight of companies well known for B2B software within the value chain, including Palantir Technologies, Salesforce, and ServiceNow.
The ACE Apple Value Chain Active ETF undertook strategic rebalancing to strengthen on-device AI capabilities. It included Apple (23.26%) and TSMC (11.25%). The weight of Broadcom, a leader in cloud and networking sectors driven by increasing AI demand, was raised from the previous 4% to about 11%. Amazon, which provides customized AI chips supporting Apple intelligence learning, was newly added.
Hwang Woo-taek, head of the Global Equity Management Department at Korea Investment Trust Management, said, "We will continue to respond proactively and flexibly so that investors can experience investment fields that are trending and changing, such as autonomous driving, AI software, and quantum computing."
All products are performance dividend-type products, and past returns do not guarantee future returns. Principal loss may occur depending on management results.
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