Hantoo Asset Management, ACE US Big Tech TOP7 Plus... "No.1 in Returns Since the Beginning of the Year"

Korea Investment Trust Management announced on the 9th that the ACE US Big Tech TOP7 Plus Exchange-Traded Fund (ETF) has recorded the highest year-to-date return among stock ETFs investing in US big tech-related stocks.

According to the Korea Exchange, as of the closing price on the 8th of this month, the ACE US Big Tech TOP7 Plus ETF posted a year-to-date return of 26.16%, the highest return excluding leveraged products. The recent 3-month return is 10.41%, and the 6-month return is 34.38%. The product has seen net individual purchases of approximately 81.9 billion KRW since the beginning of the year and 131.6 billion KRW since its listing, showing steady popularity among individual investors.

The ACE US Big Tech TOP7 Plus ETF invests in the top 10 big tech companies by market capitalization listed on the US Nasdaq exchange. It has the advantage of timely investing in stocks with growth momentum through regular rebalancing.

Regular adjustments are made every February, May, August, and November to determine stock inclusions and investment weights. Recently, Tesla’s market capitalization ranking dropped from 7th to 8th, leading to a downward adjustment of Tesla’s investment weight to 1.63% in the May rebalancing, while Broadcom’s investment weight was increased to 10%. This is due to the rapid increase in demand for network infrastructure and communication chips driven by the spread of artificial intelligence (AI), resulting in Broadcom, the leading semiconductor company for wired and wireless communications, surpassing Tesla’s market capitalization.

Currently, the ACE US Big Tech TOP7 Plus ETF invests about 95% in seven stocks: Alphabet, Apple, Amazon, Nvidia, Microsoft, Broadcom, and Meta. Notably, it concentrates over 60% of its investment in four stocks, including Alphabet, which has achieved the 2 trillion USD market cap club.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, said, “Looking at the global top 10 market capitalization stocks, the number of tech companies increased from just three at the end of December 2013 to nine by the end of April this year,” adding, “We are now in the era of tech where tech companies lead industries.”

He explained, “With the explosive growth of the AI industry recently, the influence of the top Nasdaq stocks in the US is gradually strengthening,” and “Top big tech stocks themselves are growing as a sector and an industry.”

Kim added, “In the future, tech stocks should not be viewed simply as growth stocks but as companies creating new economic moats (MOAT). I recommend long-term investment in top big tech stocks using pension accounts or Individual Savings Accounts (ISA).”

Meanwhile, the ACE US Big Tech TOP7 Plus ETF is a performance dividend-type product, and principal loss may occur depending on management results. Investors should also be aware that principal loss may occur depending on management outcomes.

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