KB Asset Management's "RISE Network Infrastructure ETF" Delivers 125% Return in Six Months

On the 19th, KB Asset Management presented the "RISE Network Infrastructure Exchange-Traded Fund (ETF)" as an alternative investment in core infrastructure for the age of artificial intelligence (AI).

As the AI era gains full momentum, the importance of connectivity infrastructure that can resolve network bottlenecks is growing. In particular, attention is increasingly focused on advancing ultra-high-speed, low-latency network technologies that connect tens of thousands of graphics processing units (GPUs) into a single system, and interest in related companies is rising as well. The RISE Network Infrastructure ETF is an ETF that invests in key companies forming the network infrastructure value chain, including 5G telecommunications equipment, base station equipment, and subscriber network equipment.

This ETF includes in its portfolio 5G-related companies that play a core role in the sweeping economic and social transformation driven by non-face-to-face interaction and digital transformation. However, telecommunications operators such as KT and SK Telecom are excluded from the investment universe to differentiate it from traditional telecom-sector products. In addition, it applies a free-float market-cap-weighted methodology, while capping the maximum weight of any single constituent at 20% to prevent excessive concentration in specific stocks. It is designed to invest in the infrastructure value chain, centered on network equipment and components, in a more balanced manner.

The underlying index is the "FnGuide Network Infrastructure Index," which selects constituents from KOSPI and KOSDAQ-listed stocks based on 5G and next-generation mobile communication-related keywords, and includes them using a free-float market-cap-weighted method. It has a high weighting in telecommunications equipment, mobile phones and related components, and semiconductor and equipment sectors.

Major holdings include Samsung Electronics (26.21%), SK Hynix (24.17%), Samsung Electro-Mechanics (17.84%), ISU Petasys (9.01%), Leeno Industrial (7.89%), LG Innotek (5.52%), Jeju Semiconductor (2.19%), RFHIC (1.35%), BH (0.80%), and Solid (0.80%).

The fund’s performance has also been strong, posting a return of 27.73% year-to-date and 125.61% over the past six months.

Yuk Donghwi, Head of ETF Product Marketing at KB Asset Management, said, "As digital transformation accelerates, network infrastructure responsible for data transmission will become an essential investment area," adding, "The RISE Network Infrastructure ETF is a structural growth product that focuses on core infrastructure builders rather than traditional telecom operators."

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