Mirae Asset Launches New 'TIGER Global On-Device AI ETF'

Mirae Asset Global Investments announced on the 16th that it will newly list the ‘TIGER Global On-Device AI Exchange Traded Fund (ETF)’ on the Korea Exchange.

The ‘TIGER Global On-Device AI ETF’ is the world’s first ETF investing in companies related to on-device artificial intelligence (AI) technology. The ETF’s underlying index is the ‘Mirae Asset Global On-Device AI Index,’ which invests in companies with global competitiveness within the on-device AI ecosystem.

‘On-device AI’ refers to AI computations performed directly on the user’s device. Since data is not transmitted to external servers and computations are processed in real-time within the device, it can be used without an internet connection, avoiding network latency, security issues, and power consumption. On-device AI is an essential technology for freely and conveniently using AI as a personal assistant in the future and is rapidly spreading across various fields.

The ‘TIGER Global On-Device AI ETF’ focuses on companies related to NPUs (Neural Processing Units), which are core to on-device AI and necessary for ‘inference’ computations. AI computations are classified into ‘training’ computations, which create AI models, and ‘inference’ computations, which generate responses using trained AI. As AI becomes more widespread, it is expected that 80% of global semiconductor demand will be used for inference. Leading companies in the NPU field include Qualcomm, Intel, MediaTek, Apple, and ARM.

In addition to NPUs, the ‘TIGER Global On-Device AI ETF’ selects and invests in leading companies within the on-device AI ecosystem. The on-device AI ecosystem consists of platform providers of AI models, NPUs, and device manufacturers. Platform companies include Microsoft, Google, and Meta, which are currently fiercely competing over deep learning algorithms called ‘small language models (sLLM)’ that enable AI to perform various natural language processing tasks within devices. Device companies produce smartphones, PCs, VR, tablets, smartwatches, and other products that implement on-device AI, with Apple being a representative example.

Mirae Asset Global Investments is holding a listing commemorative event for trading customers to celebrate the launch of the ‘TIGER Global On-Device AI ETF.’ Customers who meet the daily trading and net purchase conditions for this ETF at SK Securities and Korea Investment & Securities will receive cultural gift certificates through a lottery and other means. Detailed event information can be found on each securities firm’s website.

Kim Byung-seok, manager of the ETF management division at Mirae Asset Global Investments, said, “While the AI development competition that began with the launch of Chat GPT in 2022 brought explosive GPU demand, from this year onward, the NPU market for everyday AI use will grow,” adding, “In the era of on-device AI, the ‘TIGER Global On-Device AI ETF’ is expected to be a product investing in the second Nvidia.”

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