Samsung Active Asset Management, NH Amundi Asset Management, KB Asset Management, and Kiwoom Investment Asset Management launched AI infrastructure exchange-traded funds on May 14 on the Korea Exchange. The four Korean Stocks ETFs focus on optical communications and physical AI investments as AI technology expands into daily life applications. The products experienced price declines on May 14 amid Korean stock market volatility, with KoAct Optical Communication & Satellite Network Active falling 3.59% and HANARO US AI Optical Communication TOP10 dropping 4.65%, but most recovered May 15 with gains of 7.24% and 5.83% respectively.
Samsung Active and NH Amundi Launch Optical Communications ETFs
Samsung Active Asset Management listed KoAct Optical Communication & Satellite Network Active, while NH Amundi Asset Management listed HANARO US AI Optical Communication TOP10. Samsung Active's product invests in Korean optical communication companies, while NH Amundi's product targets US optical communication firms. As of May 15, Samsung Active's portfolio includes RF Materials at 7.76%, Korea Aerospace Industries at 7.14%, Hanwha Aerospace at 6.23%, Fiberpro at 6.15%, and Daehan Optical Communications at 4.64%. NH Amundi's portfolio comprises Marvell Technology at 14.79%, Coherent at 14.50%, Lumentum Holdings at 14.27%, Corning at 11.48%, and FormFactor at 8.65%.
Kim Hyo-sik, head of Samsung Active Asset Management's Management Team 2, stated that while Korean companies' US orders in the optical communications industry are increasing, time is needed before these translate into actual sales. An NH Amundi Asset Management representative stated that optical communications is a structural trend rather than a short-term theme, noting that co-packaged optics (CPO) technology has entered commercialization and its application range is expanding to data centers.
KB and Kiwoom Launch Physical AI ETFs with Bond Mix
KB Asset Management launched RISE US Space & Robot TOP2 US Bond Mix 50 on May 14, investing in Tesla and SpaceX with a 50% bond allocation. The product allocates 25% each to Tesla and SpaceX for a total 50% stock exposure, with the remaining 50% in US short-term government bonds. RISE US Space & Robot TOP2 US Bond Mix 50 declined 3.00% on May 14 and fell an additional 0.21% on May 15.
Kiwoom Investment Asset Management listed KIWOOM Hyundai Motor Group TOP3 Bond Mix 50, targeting Korean physical AI companies centered on Hyundai Motor Group. The product declined 1.79% on May 14 but rose 1.30% on May 15. As of May 15, the portfolio consists of Hyundai Motor at 22.42%, Kia at 15.63%, and Hyundai Mobis at 9.73%, totaling 47.78%, with the remainder in government bonds with maturities of one year or less. Target allocations are Hyundai Motor 25%, Kia 15%, and Hyundai Mobis 10%.
Lee Kyung-joon, head of Kiwoom Investment Asset Management's ETF Management Division, stated that Hyundai Motor Group is rapidly expanding its business beyond automobile manufacturing into robotics and software platforms. He noted the product is designed for use in retirement pensions by combining focused investment in Hyundai Motor Group's core growth engines with bond allocation.
FAQ
What happened to the four AI infrastructure ETFs on their launch day May 14?
All four ETFs experienced price declines on May 14 due to Korean stock market volatility. KoAct Optical Communication & Satellite Network Active fell 3.59%, HANARO US AI Optical Communication TOP10 dropped 4.65%, RISE US Space & Robot TOP2 US Bond Mix 50 declined 3.00%, and KIWOOM Hyundai Motor Group TOP3 Bond Mix 50 fell 1.79%. Most products recovered on May 15.
What companies does Samsung Active's optical communications ETF invest in?
As of May 15, Samsung Active's KoAct Optical Communication & Satellite Network Active portfolio includes RF Materials at 7.76%, Korea Aerospace Industries at 7.14%, Hanwha Aerospace at 6.23%, Fiberpro at 6.15%, and Daehan Optical Communications at 4.64%. The product focuses on Korean optical communication and space companies.
