The combined net assets of the two KODEX ETFs investing in artificial intelligence (AI) power infrastructure companies have surpassed 1 trillion won just one year after their listing. This reflects growing expectations that the power infrastructure industry will rapidly expand as global electricity demand increases significantly due to the explosive growth of the AI industry.
On August 1, Samsung Asset Management announced that the net assets of 'KODEX US AI Power Core Infrastructure,' the first US AI power ETF in Korea, have reached 646.6 billion won. The net assets of 'KODEX AI Power Core Equipment,' the first ETF in Korea to invest in leading Korean power equipment companies, have reached 434.9 billion won.
These ETFs, the first in the domestic asset management industry to invest in AI power infrastructure in both the US and Korea, were listed simultaneously on July 9 last year. KODEX US AI Power Core Infrastructure selects and invests in 10 leading companies in the core value chain of the US power infrastructure industry, including power generation, transmission and distribution networks, and data centers. Investments are made in companies such as GE Vernova, Constellation Energy, Vistra Energy, Eaton, Arista Networks, and Trane Technologies. As AI becomes more widespread in daily life, electricity demand to support it has surged. The stock prices of related power infrastructure companies are soaring.
KODEX US AI Power Core Infrastructure has recorded a one-year return of 94.4% and a year-to-date return of 35.9%. Since its listing, cumulative net purchases by individual investors have surpassed 160 billion won, reflecting its popularity among retail investors.
Not only KODEX US AI Power Core Infrastructure but also KODEX AI Power Core Equipment, which invests in leading domestic power equipment companies, is experiencing rapid growth. In just one year since listing, cumulative net purchases by individual investors have reached 140.3 billion won, and as of July 31, its net assets stand at 434.9 billion won.
The KODEX AI Power Core Equipment ETF has allocated over 60% of its portfolio to the so-called 'Big 3' power equipment companies in Korea: Hyosung Heavy Industries, LS Electric, and HD Hyundai Electric. The ETF focuses its investments on around 10 core domestic power equipment stocks. As the construction of AI data centers increases, these companies are posting record-breaking results. Accordingly, the ETF has attracted investment by posting a one-year return of 82.7% and a year-to-date return of 81.2%.
The rapid growth of these two AI power ETFs demonstrates that a 'power equipment supercycle' is underway, driven by the explosive increase in AI data centers and the global demand for the replacement of aging power grids.
Kim Chunheung, a manager at Samsung Asset Management, said, "The surge in electricity demand driven by AI and the global modernization of power grids are unstoppable megatrends," adding, "The KODEX AI Power series is the most effective investment solution to capture these trends." He also stated, "Through this growth momentum, we aim to contribute to the successful portfolio construction of our investors."
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