KB Asset Management Launches Korea's First Neo Cloud ETF

'RISE US AI Cloud Infrastructure ETF' Listed
Investing in Next-Generation AI Cloud Leaders Such as Nebius and CoreWeave

On November 25, KB Asset Management announced the launch of the country's first exchange-traded fund (ETF) focused on investing in 'Neo Cloud' companies.

Neo Cloud refers to the next-generation cloud infrastructure designed specifically for artificial intelligence (AI). It provides an ultra-high-performance computing environment based on NVIDIA graphics processing units (GPUs) tailored to meet the rapidly increasing demands of AI training and inference.

The newly listed 'RISE US AI Cloud Infrastructure ETF' is a product that strategically invests in 10 stocks related to Neo Cloud and AI data center infrastructure.

Unlike existing global cloud and AI-related ETFs, which broadly invest in software-as-a-service (SaaS) and platform-as-a-service (PaaS), the RISE US AI Cloud Infrastructure ETF focuses on the core AI infrastructure stocks, targeting the increasing usage of AI services.

The underlying index of the RISE US AI Cloud Infrastructure ETF is the 'Akros US AI Cloud Infrastructure Index.' Excluding the top five stocks by market capitalization in the global cloud industry, the portfolio consists of four Neo Cloud stocks and six AI infrastructure stocks.

The main holdings include Nebius (20.07%), CoreWeave (13.46%), Applied Digital (9.92%), Vertiv Holdings (9.86%), Marvell Technology (9.71%), and Oracle (6.98%).

Nebius has secured contracts worth up to 19.4 billion dollars with Microsoft, and CoreWeave has signed contracts worth up to 15.9 billion dollars with OpenAI, establishing themselves as key players in the next-generation cloud market.

With the scaling up of AI models, the proliferation of agentic and physical AI, and the growing power demand of data centers, the demand for high-performance cloud infrastructure is expected to accelerate further. Global consulting firm McKinsey has forecast that by 2030, 70% of data center power demand will be used for AI.

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, "While existing themes such as AI semiconductors and power have focused on the supply side, the RISE US AI Cloud Infrastructure ETF is a product that directly responds to the 'demand shift' driven by the increasing usage of AI services," adding, "It will offer AI investors a new alternative to expand their investment scope into next-generation cloud infrastructure."

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