Samsung Asset Management's KODEX AI Power Core Facilities Surpasses 100 Billion KRW in Net Assets Two Weeks After Listing

Samsung Asset Management announced on the 25th that KODEX AI Power Core Facilities, Korea's first artificial intelligence (AI) power exchange-traded fund (ETF), surpassed 100 billion KRW in net assets, reaching 121.2 billion KRW. This ETF exceeded 100 billion KRW in net assets within two weeks of its listing, with institutional and individual investors purchasing more than 23 billion KRW since its debut on the 9th.

KODEX AI Power Core Facilities is designed to focus investment on selected core stocks, including the three major domestic power equipment companies: HD Hyundai Electric (21.2%), LS Electric (23.4%), and Hyosung Heavy Industries (15.3%).

The AI power equipment sector is currently attracting significant investor interest as a post-AI semiconductor theme. Although some pointed out the high stock price growth rates of AI power equipment companies, recent earnings announcements from major companies have dispelled these concerns, sustaining investor interest. For example, on the 23rd, HD Hyundai Electric reported a 257% year-over-year increase in operating profit for Q2, reaching 210 billion KRW, resulting in a 17.69% stock price increase in a single day. Additionally, stocks included in the ETF such as LS Electric and Hyosung Heavy Industries also rose simultaneously, leading the ETF to achieve a high return of 10.59% on the 23rd alone.

The future outlook for core domestic AI power equipment companies is also positive. As power shortages caused by AI emerge globally, including in the United States, domestic power equipment companies are setting new order records for essential components such as ultra-high voltage transformers and power cables necessary for grid expansion. Korean companies with world-class technology and production history in the ultra-high voltage transformer sector have already secured orders for the next three to four years. Moreover, with domestic and U.S. local factories operating at full capacity (100%), these companies are reportedly selectively accepting high-margin orders. Thanks to efficient order strategies and local production capabilities in the U.S., the profitability of these core companies is expected to continue improving.

Supported by these industry prospects and corporate performances, net purchases have been continuously made by individual investors as well as pension funds, insurance companies, and banks since the ETF’s listing.

Lee Daehwan, manager at Samsung Asset Management, stated, “Currently, major countries face not only new demand for power equipment and infrastructure due to AI but also replacement demand for aging power facilities. This means the growth supercycle for power companies in Korea, the U.S., and other countries will continue steadily.” He added, “Investors should consider maintaining long-term interest in ETFs investing in AI power equipment and infrastructure.”

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