Shinhan Asset Management "SOL US AI ETF Series Surpasses 300 Billion KRW in Net Assets"

Shinhan Asset Management announced on the 13th that the net assets of the three SOL U.S. AI Exchange-Traded Fund (ETF) series, which invest across the entire artificial intelligence (AI) industry ecosystem spanning semiconductors, software, and power infrastructure, have surpassed 300 billion KRW.

Shinhan Asset Management launched the SOL U.S. AI Semiconductor Chip Maker ETF in April last year, followed by the SOL U.S. AI Software and SOL U.S. AI Power Infrastructure ETFs in May and July, respectively. The ‘SOL U.S. AI Semiconductor Chip Maker ETF’ focuses on fabless companies that hold core chip design technologies centered around NVIDIA, specializing in non-memory semiconductors, which are key components of AI semiconductors.

The ‘SOL U.S. AI Software ETF’ consists of companies involved in the front-end industries within the generative AI value chain, including AI platforms, applications and services, and cloud-related businesses.

Lastly, the ‘SOL U.S. AI Power Infrastructure ETF’ is a product focused on solving power shortages in the AI era. It invests across a value chain that includes data centers managing and storing the massive data generated during AI implementation, nuclear power as a large-scale energy source, and companies involved in power grid system facilities.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "Looking back at the AI industry trends last year, the AI cycle progressed from semiconductors to power infrastructure and then to software, and this trend is expected to continue this year. Proactive product launches aligned with the AI development roadmap have been effective, and a virtuous cycle of investment performance and capital inflow is occurring, accelerating the growth in scale."

Shinhan Asset Management is improving index methodologies and conducting regular rebalancing to ensure the SOL U.S. AI ETF series accurately reflects the evolving industries and newly spotlighted companies.

In early January, regular changes were made to the SOL U.S. AI Software and SOL U.S. AI Power Infrastructure ETFs. For AI software, the index methodology was improved to reflect the characteristic that various companies across diverse industries have secured their own competitive advantages. Through this regular update, AppLovin (APP), which has secured competitiveness with its AI-based advertising engine, was added, and the weights of Salesforce (CRM) and Palantir (PLTR) were increased.

In the case of AI power infrastructure, the increased weighting of nuclear power, a spotlighted energy source in the AI era, is notable. Nuclear power generation company Talen Energy (TLN) and Nano Nuclear Energy (NNE), an emerging next-generation energy source company, were newly included.

In February, changes to the portfolio composition of the SOL U.S. AI Semiconductor Chip Maker ETF will also be made to enhance portfolio stability. Reflecting financial stability requirements, INTEL (INTC), which has recently been experiencing continuous losses, will be excluded, and ARM (ARM), which possesses semiconductor chip block design technology, will be newly included.

Kim said, "The sectors leading the AI era’s development are gradually diversifying, and the periods when each leading sector is highlighted will cycle with the flow of the times. In the nascent stage of the industry, companies gaining attention emerge by sector, and as a thorough selection process unfolds, value assessments are made. Therefore, ETFs must adjust index methodologies and conduct rebalancing of constituent stocks to discover promising companies in line with these trends."

Meanwhile, Shinhan Asset Management is holding an event to commemorate the rebalancing of the SOL U.S. AI Software ETF. Until the 30th of this month, those who attach a screenshot certifying net purchases of the SOL U.S. AI Software ETF will be entered into a draw to receive a Starbucks Americano gifticon, with 300 winners selected.

After the event ends, winners will be individually notified for prize distribution, and the gifticons are scheduled to be delivered on the 31st of this month.