TIME Global AI Active ETF Surpasses 300% Return Since Listing

The First Active ETF in Korea Investing in the AI Value Chain
Rotation from Nvidia-Centric Holdings to AI Software, Infrastructure, and Robotics

TIMEFOLIO Asset Management announced on January 23 that its flagship ETF, the 'TIME Global AI Active ETF,' has surpassed a 300% return in just over 2 years and 8 months since its listing. Amid the global AI boom, the fund achieved this high return through a timely active management strategy that went beyond simply tracking market indices.

According to the Korea Exchange, the TIME Global AI Active ETF, which was listed on May 16, 2023, has recorded a return of 306.14%. This performance exceeds the 90.07% rise of the Nasdaq 100 Index over the same period. It also outperformed its benchmark, the Solactive Global Artificial Intelligence Index, which rose by 151.09%.

Analysts attribute the high return to TIMEFOLIO Asset Management's timely rebalancing strategy. In the early stages after listing, when hardware companies such as Nvidia were driving gains, the fund maximized its allocation to semiconductors to secure profits. Later, when the market underwent corrections due to concerns about an AI bubble, the portfolio quickly shifted its focus to AI software companies (such as Palantir and AppLovin) with visible earnings, as well as to power infrastructure (such as Vertiv and GE Vernova), which are essential for data center expansion. This approach enabled the fund to both defend against declines and generate additional returns.

Even recently, as global stock markets have become more volatile due to the sorting of winners and losers among big tech companies, the TIME Global AI Active ETF has delivered strong results by proactively identifying and incorporating next-leading themes such as AI infrastructure (storage), core companies (SanDisk, Western Digital), and robotics and physical AI (Hyundai Autoever) into its portfolio, demonstrating differentiated management capabilities.

Buoyed by its performance, the net asset value of the TIME Global AI Active ETF has reached approximately 1.2 trillion won. As a product eligible for inclusion in both personal and retirement pension accounts, it surpassed 1 trillion won in net assets on October 27 last year and has continued to attract steady inflows.

Kim Namho, Head of ETF Management at TIMEFOLIO Asset Management, explained, "A return of 306% is not simply a matter of luck, but the result of intensive active management based on daily analysis of global market data and rotation of leading stocks." He added, "Our strategy of identifying and overweighting the 'next Nvidia' or 'next Palantir' ahead of others, which passive ETFs cannot capture, has proven effective."

Kim further stated, "This year will mark the beginning of 'physical AI,' as AI expands beyond hardware into robotics and the real economy," and pledged, "We will continue to respond most rapidly to evolving technology trends and deliver value beyond ETFs to our investors."

TIMEFOLIO Asset Management recently changed its ETF brand name from 'TIMEFOLIO' to 'TIME' to enhance customer accessibility.