SOL US Next Tech TOP10 Active ETF to Be Listed

Shinhan Asset Management will list the 'SOL US Next Tech TOP10 Active ETF' on the Korea Exchange on October 28. This ETF includes leading companies from next-generation growth themes in the United States, such as quantum computing, drones and space, artificial intelligence (AI) infrastructure, nuclear power, and AI-driven biotechnology, all of which are considered strategic industries for the country.

The current environment is highly favorable for the growth of mid- and small-cap stocks, driven by the start of a US interest rate cut cycle, increased liquidity, the spread of the AI megatrend, and US-China hegemonic competition. The company introduced this product as a way to proactively respond to the emergence of the 'next big tech' companies.

The portfolio is composed of leading companies from industries that the US is strategically fostering to secure future dominance. Major holdings include IonQ, D-Wave Quantum, AST SpaceMobile, AeroVironment, Rocket Lab, Oklo, Snowflake, and Tempus AI. If new industries or companies with growth potential emerge due to regulatory changes or technological paradigm shifts, they will be added through an active portfolio strategy.

Kim Junghyun, Head of the ETF Division at Shinhan Asset Management, explained, "The sectors in which the US is expanding investment through policy initiatives can be divided into industries currently led by the US, such as AI semiconductors and generative AI, and strategic growth industries aimed at securing future dominance."

He continued, "Investors can access the former through the 'SOL US Tech TOP10 ETF,' and the latter proactively through the 'SOL US Next Tech TOP10 Active ETF.'"

Looking at past cases of companies that rapidly grew into big tech, most experienced swift growth by encountering megatrends in an environment of ample liquidity, eventually being included in major indices such as the S&P 500 and scaling up. Inclusion in major indices is not solely based on market capitalization requirements but also considers 'market representativeness,' so when a particular industry grows rapidly, its leading companies are more likely to be included in the index.

Kim added, "In the past, Tesla experienced all three conditions-interest rate cuts, increased liquidity, and the fostering of new growth industries-coming together, allowing it to grow from a mid- and small-cap company with a market capitalization of 50 billion dollars to a 1 trillion dollar big tech giant in just two years. Right now, the US market is once again at a point where the environment is set for the birth of the 'next big tech' companies."