Korea Investment Management said on the 7th that the net worth of the ACE Nvidia Value Chain Active exchange-traded fund (ETF) has exceeded 250 billion won.
According to the Korea Exchange (KRX), the net worth of the ACE Nvidia Value Chain Active ETF was 250.8 billion won at the close on the 4th. The net worth, which was 184.5 billion won at the end of December last year, has increased more than 35% since the start of the year.
Listed in Jun. 2024, the ACE Nvidia Value Chain Active ETF deploys capital to artificial intelligence (AI) semiconductor-related corporations centered on Nvidia. As of the previous day, Nvidia's weighting was 20.9%. The top holdings include TSMC, SK hynix, Vertiv Holdings, Intel, and Lumentum.
With quick investments in High Bandwidth Memory (HBM), co-packaged optics (CPO), and data center CPUs as AI infrastructure technology bottlenecks shift and spread, the 6-month and 1-year returns recently came in at 62.65% and 231.40%, respectively.
According to Koscom ETF CHECK, among 18 "value chain" funds, this ETF recorded a 1-month return of 35.92%. That is the highest return among overseas equity products.
Nam Yong-su, head of the ETF division at Korea Investment Management, said, "Big Tech corporations, Nvidia's largest customers, will continue to focus on AI infrastructure investment this year, including expanding cloud computing expenditure," adding, "Through the ACE Nvidia Value Chain Active ETF, we will continue investing in value chain corporations that are organically connected with Nvidia, which holds the lead in the AI industry."