KB Asset Management Launches 'RISE Global AI NAND Memory Semiconductor ETF'

As the focus of artificial intelligence (AI) technology shifts from learning to inference and demand for data storage surges, South Korea has introduced its first exchange-traded fund (ETF) to focus exclusively on the global NAND memory value chain.

On September 1, KB Asset Management announced the launch of the 'RISE Global AI NAND Memory Semiconductor' ETF.

The RISE Global AI NAND Memory Semiconductor ETF targets the expansion of data storage demand driven by AI, investing in global listed companies that either directly produce NAND flash or operate NAND-based storage solutions and infrastructure businesses. Seventy percent of its overall portfolio is equally weighted among four major global companies that directly manufacture NAND flash or provide NAND-based storage solutions, with the remaining 30 percent comprised of companies involved in the memory and storage infrastructure value chain.

This product focuses on the shift in investor attention from traditional graphics processing units (GPUs) and high bandwidth memory (HBM) toward high-performance enterprise solid-state drives (SSD) and NAND memory—which are responsible for data storage—amid surging data processing requirements stemming from the proliferation of AI agents and generative AI services.

One of its key features is broad diversification across companies based in major countries such as South Korea, the United States, and Japan, thus mitigating overconcentration in particular countries or companies and enabling investment throughout the entire global NAND value chain. Key holdings include Samsung Electronics (19.9%), SK hynix (18.8%), SanDisk (16.4%), Kioxia (12.3%), Micron Technology (11.4%), Lam Research (7.1%), Marvell Technology (3.6%), Seagate Technology (3.5%), Western Digital (3.0%), and Tokyo Electron (2.9%).

Yook Donghwi, Head of the ETF Product Marketing Division at KB Asset Management, stated, "As the core of AI shifts from learning to inference, the strategic value of enterprise SSDs and NAND memory will become even greater," adding, "Through the RISE Global AI NAND Memory Semiconductor ETF, investors will have a concentrated opportunity to invest in global NAND leaders such as Samsung Electronics, SK hynix, SanDisk, and Kioxia."

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