Samsung Asset Management's KODEX AI Power Core Equipment ETF Surpasses 200 Billion Won in Net Assets

Amid soaring power demand from artificial intelligence (AI) data centers in the United States and a surge in global power equipment replacement needs due to blackout incidents in Europe, the growth potential of the power equipment industry is once again in the spotlight. As the proliferation of AI data centers drives up electricity demand, the stock prices of major power equipment companies listed on the domestic stock market, such as transformer and cable manufacturers, are rising.

On May 22, Samsung Asset Management announced that the KODEX AI Power Core Equipment ETF, Korea's first AI power equipment ETF, has surpassed 200 billion won in net assets.

This ETF has delivered a return of 29.1% since the beginning of the year, outperforming the KOSPI's 9.4% gain over the same period. Among the 49 AI-related ETFs listed in Korea, it ranked first in returns, demonstrating differentiated performance in the thematic ETF market. This is attributed to the strong earnings of companies specializing in the power equipment sector, combined with heightened expectations for investment in power infrastructure driven by expanding AI demand.

The KODEX AI Power Core Equipment ETF invests more than 50% in the so-called "Big 3" power equipment companies?LS Electric, Hyosung Heavy Industries, and HD Hyundai Electric?and focuses on about 10 core domestic power equipment stocks.

Alongside the expansion of the domestic AI industry, power grid demand is also rising sharply in the United States and Europe. In the United States, the construction and expansion of numerous data centers and the buildout of AI infrastructure are fueling increased electricity demand. In Europe, a series of blackouts caused by aging power grids has led to greater demand for power infrastructure replacement. A large-scale blackout in Spain and Portugal last month is a representative example that highlighted the issue of aging European power infrastructure. As a result, domestic core power equipment companies specializing in ultra-high voltage transformers and related products are expected to benefit.

Lee Daehwan, manager of the ETF Management Division at Samsung Asset Management, stated, "Power infrastructure is a key foundation for the expansion of the AI ecosystem, and demand for related equipment is expected to continue in the medium to long term as data center investments increase." He added, "The KODEX AI Power Core Equipment ETF is a strategic investment vehicle that allows investors to share in the earnings growth of leading domestic companies benefiting from soaring global power infrastructure demand."