'SOL US AI Software' Net Assets Surpass 300 Billion Won

Shinhan Asset Management announced on the 19th that the net assets of the 'SOL US AI Software' ETF have surpassed 300 billion KRW.

The net assets, which were 162.8 billion KRW at the end of last year, nearly doubled in just a month and a half. Over the past month, individual investors' net purchases amounted to approximately 36 billion KRW.

According to the Koscom ETF Check classification, there are currently 27 AI ETFs in Korea. The SOL US AI Software ETF ranked first with a one-month return of 11.45%.

The rise in stock prices of major holdings such as Palantir and Salesforce is believed to have driven the ETF's performance. The three-month and six-month returns were 16.30% and 40.36%, respectively, outperforming the S&P 500 index's gains of 4.00% and 10.36% over the same periods.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, "During the digestion process of the deep-sea event, the narrative of AI investment strategies is shifting from the dominance of AI hardware such as Nvidia to the expansion and profitability improvement of AI software companies."

He continued, "From a mid- to long-term trend perspective, the AI industry is gradually evolving," adding, "The diversification of AI use cases across a wide range of fields and the high profitability potential under an efficient cost structure are reasons to focus on the AI software sector."

The SOL US AI Software ETF is a product suitable for responding to changes in the AI industry's cycle with a differentiated portfolio mainly composed of leading companies in the AI software sector. Major holdings include ▲Palantir (9.77%) ▲Salesforce (8.68%) ▲SAP SE (8.65%) ▲Microsoft (8.62%) ▲Oracle (8.25%) ▲AppLovin (6.67%).

Kim said, "Following Palantir, Salesforce, and Oracle, AppLovin (APP), which operates an AI-based advertising optimization platform, surged after announcing earnings and sales guidance that exceeded expectations," explaining, "The strong performance of AI software companies that has continued since the second half of last year is ongoing."

He added, "Along with AI scalability, AI software supported by visible sales will be one of the most anticipated sectors in the market this year."

Shinhan Asset Management operates the ‘SOL US AI ETF Series,’ which includes ‘SOL US AI Software’ along with ‘SOL US AI Semiconductor Chip Maker’ and ‘SOL US AI Power Infrastructure.’

The total assets under management amount to approximately 500 billion KRW. The company plans to diversify its AI series products in line with the expansion of the AI industry.

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