Kiwoom Asset Management Restructures KIWOOM US Quantum Computing ETF Portfolio

‘KIWOOM US Quantum Computing,’ the first quantum computing exchange-traded fund (ETF) listed domestically, will reorganize its portfolio by newly including promising quantum technology companies such as Rigetti Computing, D-Wave Quantum, and Quantum Computing through its regular rebalancing on the 6th.

Kiwoom Asset Management announced on the 5th that the rebalancing, which adjusts the investment assets and inclusion ratios of ‘KIWOOM US Quantum Computing,’ will take effect from the 6th.

Through the rebalancing, KIWOOM US Quantum Computing will significantly enhance its portfolio growth potential by newly including technology companies specialized in quantum computing such as Rigetti Computing, D-Wave Quantum, and Quantum Computing. It will also add cybersecurity companies leading quantum encryption like Fortinet and Cloudflare, as well as Lockheed Martin, the world’s largest aerospace and defense company that is at the forefront of adopting quantum computing and developing quantum technologies.

‘KIWOOM US Quantum Computing’ is a product that focuses on investing in 20 US quantum computing companies leading the growth of the global quantum industry. It includes small and medium innovative companies with high growth potential such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, as well as large technology stocks like Alphabet, Microsoft, IBM, Nvidia, and Amazon, which are active in the quantum computing market based on their outstanding IT capabilities.

‘KIWOOM US Quantum Computing’ is a passive ETF that tracks the ‘Solactive US Quantum Computing Index,’ calculated by the global index provider Solactive. This rebalancing, the first since its listing on December 17 last year, is also the first portfolio reorganization following the recent change in the index calculation criteria.

Kiwoom Asset Management and Solactive changed the regular rebalancing cycle of the underlying index for ‘KIWOOM US Quantum Computing’ last month from twice a year (May and November) to four times a year (March, June, September, and December). Regular index rebalancing refers to the procedure where the index provider periodically screens the index components and adjusts their weights according to a set methodology. This measure ensures that the index continuously maintains its original design purpose and prevents the portfolio from being excessively concentrated in specific stocks. Going forward, ‘KIWOOM US Quantum Computing’ will be able to more quickly reflect the dynamically changing quantum computing industry environment and timely include related stocks through quarterly rebalancing.

A representative from Kiwoom Asset Management said, "Since the quantum computing industry is in its early growth stage, individual companies exhibit high volatility," but added, "Using an ETF allows for lower volatility compared to investing in individual stocks while sharing in the industry’s long-term growth potential."

They continued, "If you want to invest in the long-term growth of the quantum computing industry, it is worth considering the KIWOOM US Quantum Computing ETF, which encompasses everything from quantum computing-related hardware and software to small innovative companies and big tech."