Korea Investment Management said on the 8th that it completed an emergency asset reallocation (rebalancing) for three ACE Value Chain Active exchange-traded funds (ETFs). The products subject to this rebalancing are ▲ ACE Google Value Chain Active ETF ▲ ACE Nvidia Value Chain Active ETF ▲ ACE Microsoft Value Chain Active ETF.
The core of this emergency rebalancing is that it reflects structural changes in the artificial intelligence (AI) industry. As the AI market moves from an early expansion phase into a stage of market share competition among camps, with key big tech corporations building their own AI ecosystems and entering full-scale competition, the company said it reflected this situation in the portfolio.
The ACE Google Value Chain Active ETF carried out a rebalancing in line with Google's strengthening of its AI full-stack strategy. Recently, Google established an AI full-stack structure that begins with its tensor processing unit (TPU) and extends to semiconductors, cloud (infrastructure), Gemini (model), and AI services. Accordingly, as it faces a system that directly competes with the OpenAI camp on the AI software side and the Nvidia ecosystem on the hardware side, the portfolio was restructured into two key categories: "TPU-based suppliers" and "AI service expansion investees."
On the supplier side, it newly added major corporations in the TPU value chain centered on Broadcom, as well as Celestica, Lumentum Holdings, and TTM Technologies. On the investor side, based on Google's 13F disclosure data, it selectively reflected strategic investees in precision medicine AI, AI drug development, and satellite communications.
The ACE Nvidia Value Chain Active ETF rebalancing reflected Nvidia's evolution beyond a simple semiconductor company into an AI infrastructure company that supplies entire data centers. On the supplier side, it included TSMC and SK hynix—essential for GPU production—as top holdings and encompassed the broader data center supply chain, including Arm Holdings, ASE Technology, and Vertiv.
The ACE Microsoft Value Chain Active ETF focused on the powerful moat created by the combination of OpenAI and Microsoft. The three categories that make up the portfolio are ▲ the largest shareholders of OpenAI (Microsoft, SoftBank) ▲ hardware suppliers to OpenAI (high-performance GPU supply chain, Neo Cloud) ▲ software suppliers to OpenAI (data licenses, platforms equipped with ChatGPT features). This rebalancing reflected corporations expected to benefit the most from OpenAI's vision for the evolution of an AGI (artificial general intelligence) and AI monetization platform.
Hwang U-taek, head of global equity management at Korea Investment Management, said, "As full-fledged competition among AI camps begins, the independent AI full-stack ecosystems of big tech corporations are becoming clear," adding, "This rebalancing proactively reflects the phase of AI industry differentiation represented by TPUs and GPUs, and by OpenAI and Gemini."