ACE US AI Tech Core Industry Active ETF Newly Listed

Korea Investment Management announced on October 28 that it will newly list the ACE US AI Tech Core Industry Active Exchange Traded Fund (ETF).

The ACE US AI Tech Core Industry Active ETF is an actively managed product that invests in core AI tech industries leading the transformation of industrial paradigms by actively utilizing artificial intelligence (AI). Its benchmark index is the 'Akros U.S AI Innovator Price Return Index (KRW-converted)', which is calculated and published by Akros.

The fund invests by categorizing the core AI tech industries into four sub-sectors: 'Computing Infrastructure', which focuses on high-performance semiconductors and cloud companies; 'Energy Infrastructure', which includes companies related to power generation facilities and cooling systems; 'AI Hardware', represented by autonomous driving and humanoids; and 'AI Software', which covers AI-based decision-making and data analytics.

The selection of constituent stocks takes into account representativeness such as market share and market capitalization, partnerships with big tech companies, and patented technologies. As an active ETF, it aims to outperform its benchmark index, and in addition to regular monthly asset rebalancing, it plans to make discretionary changes to the portfolio in response to market conditions. As of the listing date, the fund will include around 15 companies, such as Reddit, Oracle, Meta, Oklo, AppLovin, and Robinhood.

With the listing of the ACE US AI Tech Core Industry Active ETF, the lineup of technology stock investment products under the ACE ETF brand has been strengthened. Korea Investment Management has previously introduced a variety of technology-focused investment products, including the ACE US Big Tech TOP7 Plus ETF and the Value Chain Active ETF series. There had not been a product investing in US energy infrastructure companies. The ACE US AI Tech Core Industry Active ETF fills this gap in the lineup.

Jung Yutae, Head of Global Equity Management and fund manager, explained, "AI is expanding beyond a theme to become an industrial ecosystem," adding, "Because the leading sectors within the AI industry continue to change, it is not easy for individual investors to invest in the leading AI-driven industries and stocks according to the situation."

He further introduced, "The ACE US AI Tech Core Industry Active ETF is a product that flexibly responds to changes by capturing the leadership of key industries evolving with AI advancements, while also including next-generation AI companies."

The ACE US AI Tech Core Industry Active ETF is a performance-dividend type product, and depending on the fund's results, principal loss may occur.