Korea Investment Management Recommends Two ACE ETFs with Nvidia Holdings

Korea Investment Management suggested on the 26th that investors could utilize products such as the ACE Nvidia Bond Mixed Bloomberg ETF and the ACE Nvidia Value Chain Active ETF as investment strategies for Nvidia ahead of its earnings announcement scheduled for the 28th.

The ACE Nvidia Bond Mixed Bloomberg ETF is a single-stock product launched by Korea Investment Management in November 2022. It invests in Nvidia, a leading U.S. technology company, as well as in government bonds and monetary stabilization securities. As of the previous day, Nvidia accounted for 30% of the ETF's portfolio, the highest Nvidia allocation among ETFs listed in Korea.

The key advantage of the ACE Nvidia Bond Mixed Bloomberg ETF is its low volatility. Nvidia's annual volatility, calculated based on daily returns, was 50.55%, whereas the ETF's annual volatility for 2025 during the same period was only 18.55%. The ETF recorded returns of 18.59% over the past year, 12.52% over the past six months, and 10.48% year-to-date. It is suitable for investors who want exposure to high-growth Nvidia but are unable to tolerate high volatility. Since it invests in individual stocks and bonds at a 3:7 ratio, it is also eligible for 100% investment within retirement pension accounts.

The ACE Nvidia Value Chain Active ETF was listed by Korea Investment Management in June last year. It is part of the value chain active ETF series, which began with the ACE Tesla Value Chain Active ETF in 2023, and invests in Nvidia and companies related to the Nvidia value chain. As of the previous day, Nvidia accounted for 23.30% of the ETF, with other portfolio holdings including Broadcom, SK Hynix, TSMC, ASML, and Micron.

The main strength of the ACE Nvidia Value Chain Active ETF is its "rapid market response." It focuses investment on Nvidia, which leads the artificial intelligence (AI) semiconductor industry, while selectively investing in Nvidia value chain companies. Korea Investment Management uses its proprietary natural language processing (NLP) model for stock selection, and as an active ETF, it quickly reallocates assets (rebalancing) to replace portfolio holdings in response to market changes.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "ACE ETFs offer products that invest in sectors with long-term growth potential, tailored to various investor demands. Investments in Nvidia, which leads the AI semiconductor ecosystem, can also be selected according to investor preferences through ACE ETFs such as the ACE Nvidia Bond Mixed Bloomberg ETF and the ACE Nvidia Value Chain Active ETF."

All ACE ETFs are performance-based products, and past performance does not guarantee future results. In addition, principal loss may occur depending on investment outcomes.

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