According to Koscom ETF Check on August 4, the ACE US Big Tech TOP7 Plus ETF saw a net capital inflow of 154.7 billion KRW over the past year. This is the largest amount among the 22 ETFs classified as “big tech ETFs” on ETF Check, and is approximately six times higher than the average net inflow for ETFs of the same type (24.1 billion KRW).
The growing interest is believed to be driven by its strong performance. According to the Korea Exchange, the ACE US Big Tech TOP7 Plus ETF recorded a one-year return of 32.80%, surpassing the average return of ETFs in the same category (20.45%). Its returns for the most recent one-month and three-month periods rebounded to 4.56% and 18.70%, respectively.
Individual investors purchased 87.5 billion KRW worth of the ACE US Big Tech TOP7 Plus ETF over the past year. During the same period, the average net purchase amount for individual investors in domestically listed big tech ETFs was only 23.9 billion KRW.
This ETF is also scheduled for a portfolio rebalancing on August 7. This adjustment is based on the asset reallocation of its underlying index, the “Solactive US Big Tech Top 7 Plus Index.” Through this rebalancing, Palantir, an artificial intelligence (AI) software platform company, will be newly included. Palantir provides data analytics-based decision support systems to the US government and global corporations, and its performance has been rapidly improving due to increasing demand for AI-based defense, intelligence, and healthcare analytics.
At the same time, the proportion of Broadcom, a global infrastructure company covering both semiconductors and software platforms, will be significantly increased. As of the second quarter of this year, Broadcom achieved double-digit growth in both semiconductor and software sales, and is accelerating its expansion of corporate clients following the recent acquisition of VMware. After the rebalancing, Broadcom’s share in the ETF is expected to rise from the previous 2% range to about 10%. In contrast, T-Mobile, which was previously included, will be removed, and the proportion of Tesla will be reduced.
Nam Yongsoo, Head of ETF Management at Korea Investment Management, explained, “The ACE US Big Tech TOP7 Plus ETF is a product that focuses investment on the top seven companies by market capitalization, and has attracted rapid capital inflow due to its strong performance since listing. In the long term, big tech companies are highly likely to lead the US stock market.”
He added, “As big tech companies continue to strengthen their technological competitiveness centered on AI innovation and expand their R&D investments, selectively investing in such companies could be an effective strategy for securing mid- to long-term returns.”
The ACE US Big Tech TOP7 Plus ETF is a performance-dividend product, and past returns do not guarantee future returns. Investors should also be aware that losses may occur depending on the management results.
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