Hantoo Asset Management Launches ACE Global AI Customized Semiconductor ETF

Korea Investment Trust Management announced on the 21st that it will list the ACE Global AI Custom Semiconductor Exchange-Traded Fund (ETF) on the 22nd of this month.

The ACE Global AI Custom Semiconductor ETF features investment in the top 10 companies by market capitalization selected from U.S. and Taiwan-listed stocks related to the design and development of artificial intelligence (AI) custom semiconductors (Application Specific Integrated Circuit, ASIC). The underlying index is the ‘Solactive AI Custom Semiconductor Index PR,’ calculated and published by the index provider Solactive AG.

This index is composed of stocks related to AI custom semiconductor production listed on U.S. exchanges (Nasdaq and New York Stock Exchange) and the Taiwan Stock Exchange (TWSE), based on companies with a market capitalization of over $300 million and an average daily trading volume of over $3 million for both 1-month and 6-month periods.

As of the 18th of this month, the top constituents of the underlying index include Marvell Technology, Broadcom, ARM, Cadence Design Systems, Credo Technology Group, and Synopsys. Since the index began calculation on May 7, 2019, its return until the day before has been 387.62%, significantly outperforming the Nasdaq 100 index return of 166.02% over the same period. Global IT research firm Gartner forecasts that the AI custom semiconductor market will grow at an average annual rate of 49% from 2023 to 2027, reaching $10.6 billion by 2027.

The biggest differentiator of the ACE Global AI Custom Semiconductor ETF is that it invests in hidden AI semiconductor leaders, allowing for an independent portfolio composition from existing global semiconductor ETFs. In contrast, among 24 global semiconductor ETFs listed domestically classified by Koscom ETF Check, 12 products invest in Nvidia with an average weighting of 19.64%.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, explained, “The existing AI semiconductor market was mainly led by general-purpose semiconductors used for ‘training,’ but as AI technology advances, the ‘inference’ stage has become important, increasing the presence of AI custom semiconductors. We launched the ACE Global AI Custom Semiconductor ETF to enable investment aligned with the changing semiconductor industry trends.”

He added, “Investing together with the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF, which focuses on the four major semiconductor companies, allows investment not only in leading stocks of the existing semiconductor market but also in promising new AI semiconductor industries. Utilizing pension accounts and Individual Savings Accounts (ISA) provides tax credit benefits for long-term investment.”

Korea Investment Trust Management will also release a renewed semiconductor investment guidebook to coincide with the listing. The guidebook includes introductions to newly listed products and the latest semiconductor technology trends. The semiconductor investment guidebook will be available for viewing and download on the ACE ETF official website and blog starting from the 22nd.

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