Hantoo Asset Management Lists ACE Big Tech Value Chain Active ETF Series

Korea Investment Trust Management announced on the 5th that it will simultaneously list the ACE Big Tech Value Chain Active Exchange-Traded Fund (ETF) series on the 11th.

The series includes a total of four products: △ACE Google Value Chain Active ETF △ACE Microsoft Value Chain Active ETF △ACE Apple Value Chain Active ETF △ACE Nvidia Value Chain Active ETF.

The ACE Big Tech Value Chain Active ETF series is characterized by focused investment in the AI industry led by big tech companies, categorized by themes. The AI industry themes targeted for investment are △Cloud △Generative AI △On-Device AI △AI Semiconductors.

The representative companies for each theme, selected for having established economic moats in their respective fields, are Google (Cloud), Microsoft (Generative AI), Apple (On-Device AI), and Nvidia (AI Semiconductors). The ACE Big Tech Value Chain Active ETF series invests approximately 25% in each representative company. The remaining approximately 75% will be invested in value chain companies that are expected to grow alongside the representative companies. For example, the ACE Nvidia Value Chain Active ETF invests about 25% in Nvidia while also including AI semiconductor-related companies such as TSMC, ASML, SK Hynix, and ARM.

Another advantage of the ACE Big Tech Value Chain Active ETF series is that it is an active product. Compared to passive products, the portfolio turnover is more frequent, allowing fund managers to quickly reflect the rapidly changing trends in the AI industry in their portfolios. The funds are managed by Kim Won-jae, Head of Global Equity Management (ACE Google Value Chain Active ETF); Jung Yoo-tae, Manager of Global Equity Management (ACE Microsoft Value Chain Active ETF); Lee Sung-hoon, Head of Global Strategy Management (ACE Apple Value Chain Active ETF); and Kim Hyun-tae, Head of Global Quantitative Management (ACE Nvidia Value Chain Active ETF).

Using the ACE Big Tech Value Chain Active ETF series, investors can conveniently invest in big tech companies through pension plans and Individual Savings Accounts (ISA). All four newly listed products can be invested in up to 70% within Defined Contribution (DC) pension plans and Individual Retirement Pension (IRP) accounts, and up to 100% in personal pensions and ISAs. As these ETFs are listed domestically, they offer the investment appeal of enabling investment in overseas big tech companies without currency exchange.

Kim Seung-hyun, ETF Consulting Manager at Korea Investment Trust Management, explained, "As big tech companies and related value chain companies dominate the AI industry, the U.S. stock market is rapidly reorganizing around technology stocks. This is why tech stock investment using active ETFs, which can decide stock inclusion and exclusion reflecting trends and selectively invest, is useful."

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