At the beginning of this year, interest in U.S. stocks related to quantum computing surged as asset management firms like KB Asset Management and Samsung Active Asset Management prepared to launch quantum computing exchange-traded funds (ETFs). Currently, the only quantum computing ETF in the domestic market is the KIWOOM Quantum Computing ETF from Kiwoom Asset Management, and competition among asset managers for market share surrounding future quantum computing products is expected to intensify.
On the 25th, according to the financial investment industry, it has been confirmed that more than four asset management firms, including KB, Shinhan, Hanwha, and Samsung Active Asset Management, are undergoing review by the Korea Exchange to launch a quantum computing ETF. The KB Asset Management's 'KB RISE U.S. Quantum Computing,' Shinhan Asset Management's 'SOL U.S. Quantum Computing TOP 10,' and Samsung KoAct Asset Management's 'KoAct Global Quantum Computing Active' ETFs have completed the necessary standard code issuance for listing and are currently undergoing final review by the exchange, with a launch expected in March. Hanwha Asset Management is also aiming to launch the 'PLUS U.S. Quantum Computing TOP 10' ETF next month.
Quantum computers have garnered attention for their ability to perform calculations 30 trillion times faster than existing computers, which is significant given the vast computational needs as the artificial intelligence (AI) market expands. The United Nations (UN) designated this year as 'the year of global quantum science and technology,' and news that global corporations have rapidly begun investing in and developing related technologies has caused stock prices of related companies to surge. U.S. quantum computing developer IonQ saw its stock rise from around $15 per share in November last year to over $50 by the 6th of last month.
Currently, the only listed quantum computing-related ETF in the country is the KIWOOM U.S. Quantum Computing ETF from Kiwoom Asset Management. Launched on December 17 last year with an initial setting amount of 7.5 billion won, this ETF has experienced a 20-fold increase in assets under management (AUM) to 148.5 billion won as of the 21st of this month due to inflows from investors.
This surge in investment demand seems to have prompted other asset management firms to follow suit with their product launches. According to a representative from an asset management firm launching a quantum computing ETF, 'We believe the quantum computing market has entered a blossoming stage,' adding, 'We expect multiple existing corporations and related startups to emerge in the quantum computing industry.'
In the case of Shinhan and Hanwha's passive products, they plan to focus on investing in 10 representative corporations related to quantum computing. KB Asset Management is known to differentiate itself by allowing for more flexible adjustments in corporate investment ratios within the underlying index. Currently, Kiwoom Asset Management's quantum computing ETF holds IonQ as its largest stake at 23.18%.
Some predict that, given the relative volatility of quantum computers, active products may yield higher returns. Active ETFs typically track the underlying index with a correlation coefficient of 0.7 or below, as opposed to passive products which correlate at 0.9. They feature a structure where only 70% follows the index while the remaining 30% allows the fund manager to freely construct the portfolio to pursue higher revenue.
A representative from Samsung Active Asset Management, the only firm launching an active product, noted, 'KoAct will actively research the related corporations and incorporate them into the portfolio,' adding, 'The quantum computing value chain is also currently in the setup phase, and we will respond swiftly.'
However, there are opinions that the launch timing is somewhat late. Until last month, the KIWOOM U.S. Quantum Computing ETF was priced over 100,000 won per share, but predictions that commercialization could take a long time led to a drop to the 88,000 won range on the 24th amid development uncertainties. U.S. quantum computing leaders IonQ and Rigetti Computing also recently plummeted by 30% and 23%, respectively, within the past month.
Kim Seung-hyuk, a researcher at Kiwoom Securities, stated, 'Corporations related to quantum computers are not yet showing steady performance,' and noted, 'While there is potential for trend-based benefits in a high-expectation environment, the stock price movements will likely exhibit significant volatility until performance is proven.'
Typically, it takes 2 to 3 months for an ETF to undergo exchange review for listing. As a result, it is presumed that asset management firms delayed their listing timeline while preparing products following the launch of Kiwoom Asset Management's ETF at the end of last year. An executive from a large asset management firm remarked, 'In cases of theme-oriented products, it's common for lagging asset managers to miss the appropriate launch timing by waiting to see the first ETF,' and added, 'However, if differentiated products become diverse, it could create opportunities to expand investor choices.'