KODEX AI Power Core Equipment ETF Surpasses 600 Billion Won in Net Assets

As the era of artificial intelligence (AI) accelerates, electricity demand is surging, and Korean power equipment companies are emerging as key players in the global supply chain. In advanced markets such as the United States and Europe, Korean power equipment firms are increasing their orders for ultra-high voltage transformers and other power devices, leading a rally in their stock prices.

On October 27, Samsung Asset Management announced that the net assets of the 'KODEX AI Power Core Equipment ETF' surpassed 600 billion won, reaching 620 billion won.

KODEX AI Power Core Equipment ETF, which was listed in July last year, opened the domestic AI power ETF market. Since then, thanks to steady buying from both individual and institutional investors, its net assets have rapidly increased, making it the largest ETF among domestic AI power ETFs. Around the same time, Samsung Asset Management also grew the KODEX US AI Power Core Infrastructure ETF into an ETF with over 1.2 trillion won in net assets, leading the AI power theme.

The KODEX AI Power Core Equipment ETF directly demonstrates investors' strong interest. Since the beginning of the year, net purchases by individuals have reached 165.3 billion won, and in October alone, 30.2 billion won flowed in, concentrating capital in the fund.

This investment enthusiasm has translated into outstanding performance. Since the beginning of the year, the KODEX AI Power Core Equipment ETF has delivered a return of 142.6%, more than double the KOSPI's 64.3% gain over the same period. Additionally, it has achieved impressive returns across all periods: 30% over one month, 40.4% over three months, 139.8% over six months, and 150.9% over one year.

The KODEX AI Power Core Equipment ETF includes the 'BIG 3' leaders of Korea's power equipment industry-Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric-which together make up about 68% of the total portfolio. In addition to these core companies, the portfolio broadly covers major players across the domestic power infrastructure industry, such as LS, Taihan Electric Wire, Sanil Electric, and Iljin Electric. This strategy is designed to comprehensively capture the benefits of the power equipment sector, which is characterized by high growth and volatility, while focusing on the BIG 3 stocks.

The surge in demand for ultra-high voltage transformers and power equipment in global markets, including the United States, due to the increase in AI data center construction, has enabled these high returns. With only a limited number of companies worldwide able to reliably supply the essential power equipment for AI data centers, Korean firms-armed with strong manufacturing competitiveness-are expected to maintain a seller's market for the time being. As a result, expectations are rising that these companies will be able to raise order prices and achieve record-breaking performance.

Lee Daehwan, a manager at Samsung Asset Management, said, "New demand driven by AI and the need to replace aging equipment are coinciding globally, leading to price increases and record orders. Through KODEX AI Power Core Equipment ETF, investors can efficiently invest in Korea's leading power equipment companies, which have entered a long-term supercycle amid the global electricity shortage."