ACE Tesla Value Chain Active ETF Surpasses 1 Trillion KRW in Net Assets

Korea Investment Trust Management announced on the 27th that the net asset value of the ACE Tesla Value Chain Active Exchange-Traded Fund (ETF) has surpassed 1 trillion KRW.

According to the Korea Exchange, the net asset value of the ACE Tesla Value Chain Active ETF was recorded at 1.0014 trillion KRW as of the 26th. It is the largest among equity active ETFs. The net asset value increased by 625.4 billion KRW over the past six months, with a growth of 262.3 billion KRW since the beginning of this year.

The ACE Tesla Value Chain Active ETF focuses on investing in Tesla and selects key supply chain (value chain) companies that will grow alongside Tesla for joint investment. Since its listing in May 2023, it has established itself as the flagship product of the ACE Value Chain Active ETF series.

The fund is managed by Woo-taek Hwang, Head of Global Equity Management at Korea Investment Trust Management. Mr. Hwang also manages the Korea Investment Global Electric Vehicle & Autonomous Driving Active Fund, which has a net asset value of 1.2427 trillion KRW. This means he manages active products investing in automobiles with assets exceeding 1 trillion KRW in both public funds and ETFs.

Individual investors’ net purchases continue as well. This year alone, individual investors have made net purchases amounting to 202.9 billion KRW in the ACE Tesla Value Chain Active ETF. Since Tesla ranks first in overseas stock purchase settlement amounts by domestic investors, the ACE Tesla Value Chain Active ETF, which allows investment in Tesla and related value chain companies, is also attracting attention. Investing in the ACE Tesla Value Chain Active ETF through pension accounts, where overseas stock investment is difficult, can provide exposure equivalent to Tesla inclusion.

Excess performance compared to the benchmark index is also noteworthy. The ACE Tesla Value Chain Active ETF achieved an excess return of 32.89% over the past year compared to its benchmark, the ‘Bloomberg EV Supporters Plus Tesla Price Return Index.’ The ETF recorded returns of 16.39% over the past six months and 43.12% over the past year.

Recently, the fund underwent rebalancing focused on the autonomous driving industry. At the end of last year, the ACE Tesla Value Chain Active ETF incorporated autonomous driving-related companies, which are emerging as Tesla’s future growth drivers, into its portfolio. Specific holdings include Palantir Technologies (2.76%), Palo Alto Networks (2.71%), and Oracle (2.54%).

Mr. Hwang explained, "Regarding the development of key U.S. industries in the Trump 2.0 era, there is a high possibility of deregulation in major technologies such as artificial intelligence (AI) and autonomous driving. Since Tesla and related value chain companies are expected to benefit, attention should be paid to the ACE Tesla Value Chain Active ETF."

The ACE Tesla Value Chain Active ETF is a performance-dividend type product, and past returns do not guarantee future performance. Principal loss may occur depending on management results.

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