Samsung Active Lists KoAct Palantir Value Chain Active ETF

Samsung Active Asset Management announced on August 26 that it will list the new "KoAct Palantir Value Chain Active" ETF. This is the eighth overseas equity-type ETF under the "KoAct" brand.

The KoAct Palantir Value Chain Active ETF is an active ETF that focuses 25% of its investments on Palantir, while also actively discovering and investing in "Team Palantir" companies that can achieve mutual growth with Palantir across various sectors.

The fund invests heavily in Palantir, which integrates AI into the security and defense sectors, and also invests in global innovative companies that have established partnerships with Palantir, such as Tesla, Oracle, and Alphabet. The ETF seeks to outperform Palantir by also investing in emerging U.S. companies in the drone, shipbuilding, and defense industries.

Palantir is considered one of the most prominent next-generation U.S. big tech companies. In addition to its strong technological competitiveness, it leads the artificial intelligence (AI) service industry based on its deep network with the U.S. government. Given the anticipated growth of the AI service industry over the coming years, following the establishment of AI infrastructure, a strategy focused on "Team Palantir" is also seen as promising.

According to Precedence Research, the enterprise AI service market led by Palantir is projected to grow from $14.5 billion in 2024 to $560.7 billion in 2034, with an average annual growth rate of 44.1%. Citibank was able to reduce its customer onboarding process from nine business days to just a few seconds by adopting Palantir's AI services. The Federal National Mortgage Association (Fannie Mae) also shortened its mortgage fraud detection process, which previously took an average of two months, to just a few seconds.

The KoAct Palantir Value Chain Active ETF also selectively invests in emerging companies within the Palantir ecosystem. It pursues investments in the vertical AI ecosystem by selecting new companies that are driving paradigm shifts in the defense industry, such as the rise of drone warfare and AI-powered tactical strike systems. These include companies currently collaborating with Palantir, such as Archer Aviation, AeroVironment, and Huntington Ingalls Industries. The total annual fee for this product is 0.50%.

Yang Heechang, a manager at Samsung Active Asset Management, stated, "Despite Palantir's high valuation, considering that the enterprise AI service industry is still in its very early stages and Palantir's unrivaled competitiveness within the industry, we believe its investment appeal remains high."

He added, "For reference, in the early days of the cloud computing industry in 2014, Amazon's price-to-earnings ratio (PER) was 1,300 times. As cloud revenue surged, Amazon's stock price increased elevenfold." He further emphasized, "We plan to actively pursue differentiated returns by investing in 'Team Palantir' throughout the AI service industry cycle that will continue for the next decade."

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