KODEX AI Power Core Equipment Surpasses 1 Trillion Won in Net Assets

As the era of artificial intelligence (AI) gains momentum, the stock prices of power infrastructure companies are also rising rapidly. There is growing optimism that domestic power infrastructure firms have ample room for further gains at the early stage of the global power grid construction cycle.

Samsung Asset Management announced on the 19th that the net asset value of the 'KODEX AI Power Core Equipment' ETF has surpassed 1 trillion won, reaching 1.0096 trillion won. This achievement comes about one year and four months after its listing in July last year. The result is attributed to the fund's early positioning in the massive industrial trend of expanding power infrastructure driven by the popularization of AI, which has earned the steady trust of investors.

The explosive growth has been led by individual investors. Since the beginning of the year, cumulative net purchases by individuals for KODEX AI Power Core Equipment have reached 402.8 billion won. Despite the recent sharp rise in stock prices, 257.9 billion won has flowed in over the past month. This demonstrates that individual investors continue to have strong confidence in the growth potential of power infrastructure companies. Institutional investors such as banks and pension funds have also shown consistent buying activity, further highlighting strong interest in the AI power infrastructure theme.

Buoyed by this intense investor interest, the ETF has delivered overwhelming returns. Since the beginning of the year, it has achieved a 162.1% return, ranking third in returns among domestically listed ETFs (excluding leveraged products). Over the past month, it posted a return of 25.9%, 52.9% over three months, and 107.7% over six months.

The performance of 'KODEX AI Power Core Equipment' stems from a portfolio strategy focused on core stocks. The fund heavily invests-about 69% of the total portfolio-in the 'big three' leaders of the domestic power equipment industry: Hyosung Heavy Industries, HD Hyundai Electric, and LS ELECTRIC. In addition, the portfolio is streamlined to 11 stocks, selecting only key players in the domestic power market such as LS, Taihan Electric Wire, Sanil Electric, and Iljin Electric. Instead of diversifying across related themes, the fund is designed to directly benefit from the expansion of AI power infrastructure.

The AI power infrastructure industry is a long-term structural growth theme, driven by the explosive increase in demand for AI data centers. As countries around the world compete to establish data centers to gain an edge in AI, power consumption is rising exponentially-far beyond what existing outdated power grids can handle. This is compounded by the replacement cycle for aging power grids in advanced economies like the United States and the global trend toward eco-friendly energy transition. As a result, the market for key equipment such as transformers and cables is expected to remain a 'supplier's market' for at least several years.

The global 'power shortage' phenomenon is presenting unprecedented opportunities for domestic power infrastructure companies with outstanding technological and production capabilities. In fact, leading domestic companies such as HD Hyundai Electric, Hyosung Heavy Industries, and LS ELECTRIC are experiencing record-breaking order rallies, particularly in North America and Europe. They have secured workloads for several years ahead.

Lee Daehwan, manager at Samsung Asset Management, said, "In overseas markets such as the United States, there is a surge in new demand for power equipment due to AI data centers, as well as replacement demand for aging infrastructure, which is driving up unit prices and resulting in record orders. In Korea, expectations for AI power infrastructure companies are further rising thanks to benefits from the Energy Expressway Project."

Samsung Asset Management, which is leading the AI power infrastructure theme, is also spearheading the trend with the 'KODEX US AI Power Core Infrastructure' ETF, which invests in US power infrastructure and has grown to over 1.38 trillion won in net assets.