Favorable U.S. Power Grid Policy Boosts Momentum... KB Asset Management Highlights "RISE AI Power Infrastructure ETF"

Net Assets Surpass 600 Billion Won
Year-to-Date Returns Reach 60%

As the spread of artificial intelligence (AI) data centers is rapidly increasing power demand, power infrastructure is emerging as a new investment theme. Against this backdrop, KB Asset Management announced on the 3rd that the 'RISE AI Power Infrastructure ETF' has been attracting attention as its net assets have grown sharply.

As of the previous day, the net assets of the 'RISE AI Power Infrastructure ETF' stood at 614.1 billion won. This marks a more than tenfold increase in about eight months, up from around 56 billion won at the beginning of this year.

The returns for the past month and since the start of the year have reached 21.88% and 59.99%, respectively. The expansion of AI data centers, together with the strong performance of stocks related to power grids and electrical equipment, is believed to have contributed positively to the ETF’s performance.

This ETF invests across the entire value chain of Korea’s power sector, which serves as a core infrastructure for the AI era—covering power cables, transformers, transmission and distribution facilities, power generation facilities, and electrical equipment. As of the latest data, the top holdings include GNC Energy (8.42%), Gaon Cable (8.10%), Iljin Electric (7.13%), LS ELECTRIC (6.96%), LG Energy Solution (6.76%), Taihan Cable (6.71%), Daewon Cable (6.47%), HD Hyundai Electric (6.45%), LS Eco Energy (6.19%), and Doosan Enerbility (6.08%).

Rather than concentrating on specific power equipment companies, the ETF is designed to offer diversified exposure to leading domestic firms expected to benefit from increased power demand driven by the spread of AI data centers, spanning from power generation to transmission, distribution, and equipment.

U.S. policy changes are also supporting the expansion of investment in power infrastructure. The administration of U.S. President Donald Trump issued an executive order on August 26 that may restrict the acquisition, import, transfer, and installation of certain foreign-manufactured power grid equipment over concerns regarding national security and cybersecurity risks. If the restructuring of the U.S. power grid supply chain accelerates as a result, Korean power equipment companies with competitiveness in the North American market may also benefit.

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, “The convergence of the spread of AI data centers and the increasing demand for replacement of aging power grids is steadily driving investment demand in power infrastructure. The RISE AI Power Infrastructure ETF offers broad exposure to leading Korean power equipment and infrastructure companies, reducing the burden of individually selecting stocks, while still enabling participation in the growth of power infrastructure investments driven by the expansion of AI data centers.”

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