Korea Investment Management announced on the 28th that it will newly list the 'ACE China AI Big Tech TOP2+ Active' exchange-traded fund (ETF) on the 29th.
The ETF will invest in key corporations related to China's artificial intelligence (AI) technology. It is characterized by focusing on approximately 25% investment in representative corporations in both AI-related hardware and software sectors.
At the time of listing, it plans to focus on the promising AI stocks 'Xiaomi (hardware)' and 'Alibaba (software)'.
The portfolio will include around 24 items. About 50% will be allocated to the two representative corporations, and the remainder will be selectively invested in corporations expected to have growth potential in AI technology.
The ETF targets outperformance compared to the benchmark index. This is also why it has different portfolio inclusion ranges than the benchmark index. The benchmark index consists of about 50 Chinese big tech corporations among those listed on the Chinese and Hong Kong stock exchanges; however, the ETF portfolio could also include corporations related to Chinese AI technology listed on U.S. exchanges, according to KIM.
Oh Hye-yoon, who is in charge of overseas business at Korea Investment Management, noted, "We decided to introduce the ACE China AI Big Tech TOP2+ Active ETF as Chinese tech stocks are being reappraised following the emergence of DeepSeek."