ACE US Big Tech TOP7 Plus ETF Surpasses 700 Billion KRW in Net Assets

Korea Investment Management announced on July 8 that the net asset value of the 'ACE US Big Tech TOP7 Plus Exchange Traded Fund (ETF)' has surpassed 700 billion KRW.

The ACE US Big Tech TOP7 Plus ETF focuses its investments on the top seven big tech companies by market capitalization listed on the NASDAQ in the United States. Approximately 95% of the portfolio is allocated to these seven companies, while the remaining 5% is equally weighted among the next three companies ranked 8th to 10th by market capitalization.

According to the Korea Exchange, as of July 7, the net asset value of the ACE US Big Tech TOP7 Plus ETF stood at 708.6 billion KRW. The fund has grown steadily throughout the year due to continued capital inflows. Since the beginning of this year, 155.3 billion KRW has flowed into this ETF, surpassing the average of 39.8 billion KRW for the 21 big tech ETFs classified under ETF CHECK.

It is notable that about 40% of the capital inflow came from individual investors. Despite some corrections in US big tech stocks since the beginning of the year, the net purchases by individual investors in this ETF amounted to 65.4 billion KRW. This figure ranks first among the 21 big tech ETFs. During the same period, the average net purchase by individual investors for the 21 ETFs was only 17.1 billion KRW.

Recently, the ETF's returns have also rebounded. Over the past six months, the ETF recorded a return of -6.19%, reflecting weak performance. However, in the past month alone, it achieved a return of 5.99%, recovering from previous losses. The return over the past year stands at 12.01%.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "If interest rate cuts begin in the second half of this year, it will create a favorable environment for big tech companies." He added, "Although the valuations of US big tech companies have declined since the beginning of the year, their profitability and growth potential remain strong, making the ACE US Big Tech TOP7 Plus ETF worth attention."

He further noted, "Thanks to US companies leading artificial intelligence (AI) innovation, the cost of using AI is decreasing, while its performance is advancing toward superintelligence, reaching what is called 'The Gentle Singularity.'"

Nam emphasized, "The ACE US Big Tech TOP7 Plus ETF does not simply include ten specific stocks, but rather selectively invests in the top big tech companies by market capitalization, allowing investors to consistently benefit from market growth."

The ACE US Big Tech TOP7 Plus ETF is a performance dividend-type product, and past performance does not guarantee future results. Investors should also be aware that principal loss may occur depending on management outcomes.