Korea Investment Management's ACE AI Semiconductor Focus ETF Achieves Outstanding Year-to-Date Returns

Korea Investment Management announced on October 23 that the ACE AI Semiconductor Focus Exchange-Traded Fund (ETF) has recorded the highest return among domestic listed materials, parts, and equipment (MPE) ETFs since the beginning of the year.

According to the Koscom ETF CHECK classification, there are currently 16 MPE ETFs listed in Korea. As of the closing price on the 22nd, the ACE AI Semiconductor Focus ETF has achieved a year-to-date return of 100.61%. This performance surpasses the average return of domestic listed MPE ETFs during the same period, which stands at 52.15%.

The one-year and six-month returns are also 79.93% and 102.02%, respectively, significantly exceeding the average returns of ETFs in the same category during those periods, which are 34.56% and 59.52%. Since the beginning of the year, net purchases by individual investors in the ACE AI Semiconductor Focus ETF have totaled 16.9 billion won.

The ACE AI Semiconductor Focus ETF, launched by Korea Investment Management in October 2023, is characterized by its investment in core companies related to artificial intelligence (AI) semiconductors and high-bandwidth memory (HBM). Its underlying index is the 'FnGuide AI Semiconductor Focus Index,' calculated and published by FnGuide.

According to a report published by Bloomberg Intelligence, the global HBM chip market is expected to grow from 4 billion dollars in 2023 to 130 billion dollars by 2033, with an average annual growth rate of 42%. The report forecasts that major suppliers SK hynix and Samsung Electronics will hold a combined market share of approximately 75% in 2033, projecting continued strong performance by Korean companies in the global HBM market.

The ACE AI Semiconductor Focus ETF selects and concentrates its investments on key players driving the growth of the HBM market. The product's outstanding performance is attributed to this strategy. Korea Investment Management invests more than 78% of the ETF's assets in its top three holdings: Hanmi Semiconductor (28.91%), SK hynix (26.92%), and Samsung Electronics (23.07%).

Nam Yongsoo, Head of ETF Management at Korea Investment Management, explained, "AI semiconductors at the center of the global technology paradigm and HBM technology, which has become a core component of next-generation AI infrastructure, are expected to continue to drive steady market growth as infrastructure expands."

He added, "Since the ACE AI Semiconductor Focus ETF is a product that concentrates investments in leading domestic semiconductor companies with global competitiveness, it deserves attention for generating long-term and stable returns in line with market growth."

The ACE AI Semiconductor Focus ETF is a performance-based product, and past performance does not guarantee future results. Please note that principal loss may occur depending on investment outcomes.