Timefolio Asset Management is set to list an exchange-traded fund (ETF) that invests in the Chinese artificial intelligence (AI) industry, a new megatrend. This is the first active ETF in Korea to offer diversified investments in leading AI-related tech companies listed in mainland China, Hong Kong, and Taiwan.
On May 13, Timefolio Asset Management will list the 'TIMEFOLIO China AI Tech Active ETF,' which captures growth opportunities in the next-generation Chinese AI industry.
Rather than focusing on a single industry, the ETF provides differentiated investment opportunities by building a balanced portfolio across China's ten major strategic industries, including AI software, semiconductors, electric vehicles, and robotics.
Through its 'Made in China 2025' strategy, China has already surpassed its initial targets in electric vehicles, semiconductors, green energy, and robotics, ushering in a new phase of technological advancement. The success of the AI chatbot 'DeepSeek' has shifted the AI investment paradigm from high-cost, high-capacity models to an efficiency-focused approach, drawing renewed attention in the global technology race.
The ETF invests in leading Chinese AI tech companies such as Alibaba, Tencent, Baidu, SMIC, and Hua Hong Semiconductor. It is also designed to invest across the entire technology ecosystem by including global semiconductor companies such as TSMC, ASE Technology, and UMC. In addition, major players in the electric vehicle and robotics sectors, such as BYD and Xiaomi, are evenly represented to expand exposure to rapidly growing future industries.
Kim Namho, head of ETF management at Timefolio Asset Management, stated, "The TIMEFOLIO China AI Tech Active ETF is designed to capture the growth of a broad technology ecosystem by strategically diversifying investments across China's AI and advanced industries, rather than being limited to a single sector." He added, "This is the optimal time to seize opportunities through an active ETF at a pivotal point in the global power competition."
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