KB Asset Management's 'RISE Network Infrastructure' Achieves Top 6-Month Return Among Domestic Equity ETFs

Amid accelerating growth in the artificial intelligence (AI) industry and a surge in data traffic, demand for network infrastructure has skyrocketed. Against this backdrop, an exchange-traded fund (ETF) that concentrates its investments in key semiconductor and equipment companies within the value chain has delivered the highest returns among domestic equity ETFs.

On August 27, KB Asset Management announced that the 'RISE Network Infrastructure' ETF ranked first among 398 domestic equity ETFs, recording a return of 67.24% over the past six months.

According to FnGuide, as of August 26, the fund recorded an annual return of 346.80% and a three-year return of 479.30%, showing outstanding performance not only in the short term but also over the medium and long term.

This ETF focuses on investing in core equipment, components, and semiconductor companies that are the real beneficiaries of the expansion of 5G, next-generation mobile communications, and AI data centers, excluding traditional telecom operators such as SK Telecom and KT. Its underlying index is the 'FnGuide Network Infrastructure Index,' which selects stocks listed on KOSPI and KOSDAQ based on keywords related to 5G and next-generation mobile communications and weights them according to their free-float market capitalization. The ETF's portfolio structure has a high concentration in the communication equipment, mobile phone and related parts, and semiconductor and equipment industries.

Currently, the ETF’s major holdings consist of Samsung Electronics (23.16%), SK hynix (21.29%), Samsung Electro-Mechanics (19.47%), LG Innotek (11.75%), and ISU Petasys (8.68%). These top five stocks make up 84.35% of the portfolio. Other holdings include LIG Nex1 (4.75%), Jeju Semiconductor (3.22%), Daehan Fiberoptics (2.51%), RFHIC (1.13%), and Solid (0.71%).

SK hynix supplies high-bandwidth memory (HBM) essential for AI accelerators. Samsung Electro-Mechanics is responding to increased demand resulting from enhanced performance requirements of data centers, such as through multilayer ceramic capacitors (MLCC) for servers. ISU Petasys supplies multilayer printed circuit boards (MLB) necessary for high-speed data transmission.

Yook Donghui, Head of ETF Product Marketing at KB Asset Management, remarked, "The RISE Network Infrastructure ETF is a fund that concentrates investments in companies that actually benefit from increased infrastructure spending as the AI industry expands." He added, "With recent announcements of large-scale shareholder return policies by Samsung Electronics and SK hynix, as well as expanding AI infrastructure investment, market interest in these companies continues to grow. We believe this will further enhance the investment appeal of the RISE Network Infrastructure ETF."

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