South Korea debuts AI ETF to tap surging investor demand

Korea Investment Management’s ACE U.S. AI Tech Core Industry Active Exchange-Traded Fund (ETF), which launched on October 28, is seeing a surge in demand. On-chain data showed that the ETF recorded individual net purchases of 28 billion Korean won on its establishment day.

The ACE U.S. AI Tech Core Industry Active ETF also surpassed cumulative individual net purchases of 76 billion Korean won within five days of listing. A source from Korea Investment Management argued that the evolution of AI technology is a structural renewal across industries, which is already deeply permeating every aspect of daily life. He also told local media that investing in the AI sector is no longer a question of whether to invest but what and how to invest.

Korea Investment Management’s ETF encompasses the entire AI value chain

According to Korea Investment Management, the ACE U.S. AI Tech Core Industry Active ETF captures the industrial technological shift driven by artificial intelligence. The firm also acknowledged that the fund dynamically adjusts investment weights across four core industries, including computing infrastructure, AI hardware, energy infrastructure, and AI software.

The investment manager noted that the AI industry has an ecosystem where leading sectors change at each stage of development. The firm confirmed that its ETF encompasses the entire AI value chain and reflects market trends as well.

“AI, big tech, and semiconductors are not short-term trend sectors but megatrends fundamentally transforming industrial structures. Broad benefits are expected from AI infrastructure to application stages, and their influence will grow as changes accelerate.”

–Nam Yong-soo, Head of ETF Management Division at Korea Investment Management.

Yong-soo also revealed that ACE ETFs categorizes market trends into core axes to design investment areas. He added that the fund will continue to present strategic alternatives tailored to investor demand. The tech executive also argued that now is the optimal timing for AI investment for those aiming to stand at the center of artificial investment innovation.

Korea Investment Management acknowledged that it has strengthened its focus on U.S. technology and growth stocks since it rebranded its ACE ETF lineup. One of the company’s products in its lineup is the ACE U.S. Big Tech TOP7 Plus ETF. 

Korea Investment Management strengthens its focus on U.S. tech

The firm revealed that the fund focuses its investments in seven major U.S. tech giants, including Google, NVIDIA, Apple, and Microsoft. According to the investment manager, the ETF also captures key growth drivers in the tech space, such as cloud, AI, data centers, and platform business.

On-chain data revealed that the ETF has seen continuous capital inflows since its listing in September 2023. The fund recorded a net cumulative individual net purchase of 124 billion Korean won since the start of 2025. 

The fund has also had 16 consecutive days of individual net purchases and stable returns. On-chain data showed that the ETF recorded a 6-month return of 45.28%, a 1-year return of 45.55%, and a post-listing return of 129.61%.

The investment manager rebranded the ACE ETF and launched its first product, the ACE Global Semiconductor TOP4 Plus ETF. According to the firm, the fund is a representative technology stock ETF that focuses on the four major pillars of the global semiconductor market: memory, non-memory, foundry, and semiconductor equipment.

Korea Investment Management believes that semiconductors are a core infrastructure industry connected to AI, data centers, and automotive electronics. On-chain data showed that the firm’s ETF has 632.7 billion Korean won in assets under management.

Its assets represent a 103.77% 6-month return and a post-listing return of 377.34%, surpassing 40,000 Korean won per share. At the time of publication, Korea Investment Management’s stock is exchanging hands at approximately 172,399 KRW

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