Hanwha Asset Management "'ARIRANG US Nasdaq Tech' ETF... 1-Year Return 80%"

Key Success Factors for AI Market Growth

Hanwha Asset Management announced on the 30th that the 'ARIRANG US Nasdaq Tech' Exchange-Traded Fund (ETF) has surpassed an 80% return over the past year.

According to Korea Fund Evaluation's Fund Square, this fund recorded a 1-year return of 80.45% as of the 25th. This performance is approximately 70% higher than the Nasdaq 100's past 1-year increase of 46.59%.

'ARIRANG US Nasdaq Tech' is an ETF that invests equally in technology sector companies listed on the Nasdaq index, one of the three major US indices. As of the 25th of this month, its top holdings are NVIDIA (2.82%), AMD (2.79%), and Marvell Technology (2.73%). In addition, it includes 42 core tech stocks covering semiconductors, software, and artificial intelligence (AI), such as Apple, Microsoft, Broadcom, and Alphabet. The underlying index is the ‘NASDAQ 100 Technology Sector’.

The main driver of performance is the growth of the AI market. As the US interest rate hike cycle nears its end, growth stocks have generally shown strength, and the impact of AI advancements on the global market has been highly valued, leading to significant gains in related tech stocks.

Accordingly, Hanwha Asset Management advised that with the upcoming period of abundant liquidity following potential base rate cuts, 'ARIRANG US Nasdaq Tech' would be a suitable investment option for investors seeking excess returns compared to the Nasdaq 100 index. For investors who find the volatility of ETFs concentrated in 10 to 20 stocks burdensome, Hanwha Asset Management explained that investing in 'ARIRANG US Nasdaq Tech,' which diversifies across about 40 stocks, could be considered.

Depending on investment preferences, ‘ARIRANG US Tech 10 Leverage iSelect (Synthetic)’ and ‘ARIRANG US Tech 10 iSelect’ are also options. Both products focus on investing in 10 representative big tech companies listed on the US Nasdaq market. They track 2x and 1x returns, respectively, of the underlying ‘iSelect US Tech 10’ index. The constituent stocks include ▲APPLE, ▲MICROSOFT, ▲ALPHABET, ▲AMAZON, ▲TESLA, ▲NVIDIA, ▲META PLATFORMS, ▲BROADCOM, ▲ADOBE, and ▲CISCO SYSTEMS.

Since their listing on July 14 last year, the two ETFs have recorded recent 6-month returns of 37.94% and 20.20%, respectively. The 'ARIRANG US Nasdaq Tech' ETF also shows an excellent 6-month return of 27.44%. All three ETFs outperform the Nasdaq 100 index, and according to KOSCOM (ETF CHECK), 'ARIRANG US Tech 10 Leverage' ranked 2nd in 6-month returns among equity ETFs, while 'ARIRANG US Nasdaq Tech' ranked 9th. At launch, 'ARIRANG US Tech 10 Leverage' also demonstrated greater performance differentiation compared to a 3x leveraged investment in the Nasdaq representative index based on its own backtest results.

Choi Young-jin, Head of Strategic Business Division at Hanwha Asset Management, stated, “With the emergence of generative AI last year, the full-scale AI era is expected to begin this year.” He added, “Since big tech companies with outstanding technological capabilities globally are leading the AI industry, it is necessary to prepare for the expansion of the AI ecosystem by investing in US tech stocks composed of these companies.” He further noted, “Leverage products are suitable for investors seeking more aggressive returns through higher volatility, so we urge investors to select investment products according to their own investment preferences.”

This content was produced with the assistance of AI translation services.