Korea Investment Management to List Two New ETFs Including ACE K Semiconductor TOP2+ on the 23rd

Korea Investment Management is introducing two exchange-traded funds (ETFs) focused on semiconductors and power infrastructure, the two major pillars driving the artificial intelligence (AI) supercycle.

On June 22, Korea Investment Management announced that it will list two new ETFs on June 23: the 'ACE K Semiconductor TOP2+ ETF' and the 'ACE Korea AI Power TOP10 ETF'.

The ACE K Semiconductor TOP2+ ETF is a product that invests intensively in leading domestic companies spearheading the global AI semiconductor market, using the 'KRX K-AI Semiconductor TOP2+ Index' as its underlying index. This index consists of 10 highly relevant stocks selected based on market representativeness, liquidity, and AI semiconductor relevance. The key feature of this product is its concentrated investment in major domestic memory and substrate companies. In line with surging memory demand in the AI agent era, the portfolio's exposure to Samsung Electronics, SK hynix, and SK Square—core beneficiaries in the global memory market—will be increased up to 70%. In addition, Samsung Electro-Mechanics, a leading domestic substrate company expected to benefit from expanding demand for AI server and robotics semiconductors, will be included to establish a 'semiconductor all-in-one portfolio' centered on these four core stocks. The remaining allocation will be distributed among other beneficiary stocks with high correlation to AI semiconductor keywords.

The ACE Korea AI Power TOP10 ETF, which will be listed simultaneously, targets key domestic companies expected to benefit from soaring power demand and the construction of power grid infrastructure in the AI era. Based on the underlying 'Akros Korea AI Power TOP10 Index,' this ETF selects the top 10 companies with high similarity to power and data center assets. Its distinguishing feature is that it not only covers power infrastructure and sources—identified as a new bottleneck in the AI era—but also includes companies involved in on-site power generation and energy storage systems (ESS) essential for stable power supply to AI data centers. In particular, with the U.S. market experiencing pronounced AI power bottlenecks due to active data center investments, the ETF includes a wide range of companies with global competitiveness. As a result, LS Electric, Hyosung Heavy Industries, HD Hyundai Electric, Doosan Enerbility, and Doosan Fuel Cell are expected to be included.

Nam Yongsoo, Head of the ETF Division at Korea Investment Management, emphasized, "Semiconductors and power infrastructure are the two massive pillars driving the AI supercycle. Especially in the early stages of industry growth, it is important to preemptively secure companies leading the market and dominating the value chain as a package, rather than being exposed to the volatility of individual stocks." He added, "These two newly listed products both capture core domestic industries with clear long-term growth potential, encompassing the dominant domestic value chain in the AI semiconductor market and the exclusive ecosystem covering everything from power source development to transmission, distribution, and components."

Both the ACE K Semiconductor TOP2+ ETF and the ACE Korea AI Power TOP10 ETF are performance-dividend products, and principal loss may occur depending on investment results. The expected constituent stocks may change depending on market conditions.

This content was produced with the assistance of AI translation services.