Samsung Active Asset Management Lists KoAct Broadcom Value Chain ETF

An ETF has been launched that allows investors to focus on Broadcom, a company emerging as the 'next-generation Nvidia'.

On May 20, Samsung Active Asset Management announced the listing of 'KoAct Broadcom Value Chain Active' ETF, the first ETF in Korea to invest across the entire Broadcom value chain industry. This is the twelfth ETF under the 'KoAct' brand.

Broadcom is a leading company that holds a 50% market share in application-specific integrated circuit (ASIC) design and the AI network market. Since the emergence of China's DeepSeek, recent artificial intelligence (AI) development trends have been shifting toward low power consumption, cost-effectiveness, and enhanced efficiency. ASIC chips, which are not limited to Nvidia's GPU (graphics processing unit) chips, are gaining attention. Analysts say that DeepSeek's low-cost AI design strategy has triggered demand for proprietary ASIC chips, breaking away from the Nvidia-centric monopoly.

As ASIC emerges as a challenger to Nvidia's dominance, investment in ASICs by big tech companies is expected to continue expanding. Broadcom is responsible for designing ASICs for major U.S. big tech companies such as Google, Meta, Apple, and OpenAI. Broadcom's ASIC design revenue is expected to grow at an average annual rate of 55%, rising from $8 billion last year to $30 billion by 2027. With ASICs offering better energy efficiency than GPU chips and being optimized for specific AI tasks, Broadcom is drawing attention as the next-generation Nvidia and is expected to continue benefiting from this trend.

KoAct Broadcom Value Chain Active selects Broadcom, the global leader in the ASIC market, as well as key companies in Broadcom’s supply chain (value chain) for investment. The core supply chain includes chip design, semiconductor manufacturing, AI networks, and infrastructure software companies. By allocating a high weighting of 22% to Broadcom, which is involved in every stage from initial semiconductor design to hardware development, the ETF seeks both stability and growth potential.

The portfolio of KoAct Broadcom Value Chain Active consists of key supply chain companies centered on Broadcom, including Broadcom itself, META (in-house chip design), TSMC (semiconductor foundry), and Arista (AI infrastructure network company). The total expense ratio is 0.50% per year.

Kim Heeduk, a manager at Samsung Active Asset Management, introduced the ETF by saying, "KoAct Broadcom Value Chain Active selects key companies within Broadcom’s value chain and is actively managed to flexibly respond to developments such as U.S.-China trade negotiations, growth in the ASIC market, and big tech investment trends."

He added, "Through Samsung Active Asset Management's robust corporate research, we will conduct in-depth analysis of global semiconductor and AI industry trends and swiftly adjust the portfolio. With this active management strategy, we aim to generate returns in excess of the Nasdaq index."