KB Asset Management said on the 12th that it listed the "RISE Hyundai Motor fixed physical AI ETF," which concentrates investment in Hyundai Motor Group and core partners.
The product is characterized by its structure that includes not only Hyundai Motor Group's key affiliates but also major partner corporations expected to benefit directly from the transition to robots and artificial intelligence (AI), enabling investment across the entire physical AI ecosystem.
Putting forward a strategy differentiated from existing automobile exchange-traded funds (ETFs), it reduced exposure to the internal combustion engine-centered auto industry and expanded exposure to Robotics, AI software, and smart factory-related areas.
The ETF's underlying index is the "KEDI Hyundai Motor fixed physical AI index," which fixes Hyundai Motor at 25% and invests in the top 14 stocks with high similarity scores to physical AI (Autonomous Driving, Robotics, factory automation). It applies a market-cap-weighted method but caps each stock's maximum weight at 15%.
As of the day, the main constituents to be included are Hyundai Motor (25.89%), Hyundai Mobis (14.81%), Kia (13.77%), Rainbow Robotics (9.59%), LG Innotek (9.27%), Hyundai AutoEver (7.58%), LG CNS (3.92%), Doosan Robotics (3.49%), ROBOTIS (3.15%), and SL Corporation (1.81%).
With "physical AI" drawing attention as the next-generation industrial paradigm in the global investment market recently, Hyundai Motor Group is rapidly transforming into a future manufacturing corporations that span robots, autonomous driving, and smart manufacturing systems beyond automobile production. It is cited as a leading player in the global physical AI industry, given that it already possesses Robotics competitiveness based on Boston Dynamics and a mass-production system at the same time.
Yuk Dong-hwi, head of ETF product marketing at KB Asset Management, said, "It will be a product that enables efficient investment in the Hyundai Motor ecosystem, which is at the center of the global physical AI industry's growth."