'SOL US AI Software' Surpasses 50 Billion KRW in Net Assets

Shinhan Asset Management announced on the 2nd that the net assets of the ‘SOL US AI Software’ ETF, which focuses on investing in core US AI software companies, have exceeded 50 billion KRW. This is the result of net purchases exceeding 30 billion KRW by individual investors over the past month. Consequently, the net assets surged more than threefold from 15.2 billion KRW at the end of October in just one month.

The recent attention on AI software companies is due to US AI software firms consecutively reporting better-than-expected earnings, partially alleviating concerns about profitability. The market’s expectations are rising as stock price increases based on earnings are occurring even before the full-scale AI B2C (business-to-consumer) software market opens.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, "Companies such as Palantir, Oracle, ServiceNow, and Fair Isaac, which are hitting new highs based on recent earnings, provide platform software that can utilize AI from a cost optimization perspective," and added, "It is necessary to pay attention to the momentum of AI software companies through next year." He further stated, "The SOL US AI Software ETF’s differentiated portfolio, centered on the top companies in each AI software sector, is an advantage and is suitable for responding to the AI cycle shift moving towards software."

The ‘SOL US AI Software’ ETF is the second product in the ‘SOL US AI Series’ and was listed in May. Major holdings include ▲Microsoft (17.3%) ▲Salesforce (9.1%) ▲Oracle (8.0%) ▲Palantir Technologies (7.7%) ▲ServiceNow (7.3%) ▲Adobe (6.7%) ▲Palo Alto (5.1%) ▲Fair Isaac (4.5%). Among domestic ETFs, it holds the highest proportions of Salesforce, Adobe, Palantir, Palo Alto, and Fair Isaac.

The returns over the past 1 month, 3 months, and 6 months were 11.0%, 22.14%, and 26.90%, respectively, outperforming the S&P 500 index for the same periods (3.28%, 6.63%, 13.08%). Looking at the one-month performance of major holdings, Palantir Technologies (47.01%), Salesforce (12.34%), ServiceNow (10.20%), Oracle (5.96%), and Fair Isaac (17.88%) showed strong results.

Kim said, "AI remains at the center of recent market trends," and predicted, "Discussions will become more active about what the next AI industry will be, including software." He emphasized, "It is necessary to maintain steady interest in the continuously growing AI industry and diversify AI investment portfolios across semiconductors, software, power infrastructure, and more."

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