[Real Asset Management] Booming Humanoid ETFs: Is It Time to Jump In?

ETFs Investing in the Humanoid Value Chain by Samsung, Mirae Asset, KB, and Hanwha Asset Management
Investing in Leading Humanoid Companies in the US, China, and Beyond

Interest in humanoid robots is growing in the domestic stock market. Not only individual stocks, but also exchange-traded funds (ETFs) related to humanoid robots have shown notable increases. Experts in the domestic asset management industry advise that the humanoid robot market is expected to grow rapidly and is likely to become a next-generation growth theme.

According to the asset management industry on October 15, the TIGER China Humanoid Robot ETF has recorded a return of 48.54% since its listing on May 27. Its net asset value has increased to 290.2 billion won.

The TIGER China Humanoid Robot ETF includes Chinese humanoid robot companies listed in China and Hong Kong. It invests in Chinese humanoid robot companies that possess technological capabilities and cost competitiveness under the world’s largest robot manufacturing base, as well as in core component companies essential for humanoid production.

Jung Huihyeon, Head of ETF Management at Mirae Asset Global Investments, explained, "China is leading the global humanoid market. With policy support for artificial intelligence (AI) and robotics being strengthened in China, growth potential across the entire value chain remains valid." He added, "Although there has been a correction over the past two days, this can be seen as a short-term cooling-off period caused by external shocks. From a mid- to long-term perspective, we see this as a buying opportunity for Chinese humanoid companies with strong technological competitiveness."

China’s AI technology and humanoid robot industry are growing rapidly. China is the world’s largest producer and consumer of industrial robots. The country holds an overwhelming market share not only in companies that manufacture finished robots, but also in the core component sector essential for the mass production of humanoids.

The KODEX China Humanoid ETF, which was listed on May 13, has also been steadily trending upward. Its return over the past three months was 40.75%.

The KODEX China Humanoid Robot ETF is a product that invests 100% in humanoid companies, from finished humanoid robot manufacturers such as Ningbo Tuopu Group, Inovance, UBTECH, and Leader Harmonious Drive System, to core component companies. Investors can also invest in key component companies that support the technology behind actuators (joints) and flexible hands, which are essential for the delicate movements of humanoid robots.

There are also ETFs that allow investment in humanoid robot-related stocks not only in China, but also in the United States and South Korea. On April 15 of this year, Samsung Asset Management, KB Asset Management, and Hanwha Asset Management simultaneously listed the following: KODEX US Humanoid Robot ETF, RISE US Humanoid Robot ETF, and PLUS Global Humanoid Robot Active ETF.

The KODEX US Humanoid Robot ETF has posted a return of 46% since its listing. It invests in leading US tech companies such as Tesla, Nvidia, and Amazon, which are leading the humanoid robot ecosystem based on their AI technology and capital strength.

The PLUS Global Humanoid Robot Active ETF is an ETF that focuses on investing in global humanoid robot leaders such as Tesla and South Korea’s leading robot company, Rainbow Robotics. It is operated as an active ETF, considering the rapid development of the humanoid robot industry. In the case of core startups in the humanoid robot sector conducting initial public offerings (IPOs), the ETF proactively considers including them directly, rather than waiting for them to be included in the benchmark index, in order to capture investment opportunities ahead of time.

Park Chanwoo, ETF Portfolio Manager at Hanwha Asset Management, said, "As expectations for the commercialization of humanoid robots grow, the stock prices of companies related to humanoid robots have recently shown strong performance." He added, "We expect that not only companies that manufacture finished humanoid robots like Tesla, but also companies producing actuators and sensors-which account for over 60% of humanoid robot production costs-will benefit as well."

The RISE US Humanoid Robot ETF has achieved a 20% return over the past three months, outperforming the Nasdaq 100 index, which is centered on technology stocks. Its portfolio consists of leading companies across the entire value chain, including components such as sensors, motors, and batteries for humanoid robots, as well as software such as autonomous driving and AI algorithms.

Kang Shinyoung, ETF Portfolio Manager at KB Asset Management, said, "We expect balanced development in hardware, software, and applications (apps) related to humanoid robots." He explained, "It is not just a single technology, but the entire ecosystem that is advancing, so it is expected to act as upward pressure on the stock prices of the entire theme, rather than just individual company issues."