Kiwoom Asset Management Adds Micron and SpaceX to KIWOOM US AI Tech High Beta ETF

KIWOOM Asset Management’s U.S. Artificial Intelligence (AI) High Beta Exchange-Traded Fund (ETF) has revamped its portfolio by newly including companies such as Micron and SpaceX through its regular rebalancing process.

On October 6, KIWOOM Asset Management announced that its “KIWOOM US AI Tech High Beta” ETF has newly added six stocks, including Micron Technology and SpaceX, through regular rebalancing, with the revised portfolio taking effect on the same day.

This rebalancing saw changes to six out of the 30 portfolio stocks, accounting for 20% of the total holdings. Micron Technology was newly added with a 10% allocation, making it the ETF’s largest holding, while SpaceX became the second largest with a 7.70% weight. Other newcomers included semiconductor test equipment and robotics automation company Teradyne (3.36%), rare earth materials and permanent magnet supply chain company USA Rare Earths (2.60%), gas engine power systems for data centers company INNIO (2.31%), and high-speed optical communications semiconductor company MaxLinear (2.23%). On the other hand, Semtech, Fabrinet, Lumen Technologies, ACM Research, Joby Aviation, and Ultra Clean Holdings were removed from the portfolio.

Notably, USA Rare Earths, INNIO, and MaxLinear—newly added in this rebalancing—are unique to the KIWOOM US AI Tech High Beta ETF among locally listed ETFs in Korea. Leveraging analysis based on large language models (LLM), the ETF has identified key companies supporting AI infrastructure expansion, such as firms specializing in rare earth materials and permanent magnets, on-site power generation for data centers, and high-speed optical communications.

The KIWOOM US AI Tech High Beta ETF is a passive ETF that invests in the top 30 high-beta U.S.-listed companies related to AI and frontier technology. The fund selects relevant firms through keyword analysis utilizing LLMs and determines investment targets based on beta, which measures market sensitivity. The composition and allocation are reviewed and adjusted quarterly according to set criteria, and newly listed companies can be included if they meet investment requirements.

Each stock’s weight is calculated by equally reflecting market capitalization and beta (50% each), while the maximum allocation per stock is capped at 10% during regular rebalancing. Even after the latest rebalancing, the ETF maintains diversified exposure across sectors such as AI cloud, quantum computing, and energy. However, due to its focus on high market sensitivity stocks, significant price volatility may also occur during market downturns.

Kyungjun Lee, Head of ETF Management at KIWOOM Asset Management, stated, “The high-beta strategy aims for high-risk, high-return investments by identifying and focusing on stocks with strong market sensitivity,” and added, “This rebalancing incorporated companies from the memory and space sectors, AI power, and, for the first time, rare earth companies, reflecting emerging trends in the market.” He continued, “Rather than sticking to a specific theme, the ETF's quarterly reviews and selection process allow it to adapt to evolving AI investment trends, which is a key strength.”

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