Korea Investment Management's ACE Google Value Chain Active ETF Ranks First in Year-to-Date Returns Among Peers

Korea Investment Management announced on March 26 that the ACE Google Value Chain Active Exchange Traded Fund (ETF) has achieved the highest year-to-date return among internet and telecommunications services sector ETFs listed in Korea.

According to Koscom ETF CHECK, there are currently 6 internet sector ETFs and 9 telecommunications services sector ETFs listed in Korea. Among them, the ACE Google Value Chain Active ETF recorded a year-to-date return of 16.85% based on the previous day's closing price, ranking first across both categories combined.

This performance significantly exceeds the average year-to-date return for the same period, which stands at 0.53% for internet sector ETFs and -7.27% for telecommunications services sector ETFs. It also represents an outperformance of more than 14.91 percentage points compared to the benchmark index (BM). The ETF's returns over the past 6 months and 1 year were 32.81% and 77.68%, respectively. Since the beginning of the year, individual investors have made net purchases totaling 17.3 billion won.

The strong performance of the ACE Google Value Chain Active ETF is attributed to its active strategy of investing not only in Google but across the entire value chain of companies benefiting from increased capital expenditures (CAPEX) by big tech firms. Notably, while the share price of Google (Alphabet) listed on the Nasdaq has declined by 7.72% since the start of the year due to increased costs from expanding AI infrastructure investments, the ETF has delivered contrasting returns.

Google's proprietary AI semiconductor, the Tensor Processing Unit (TPU), requires high bandwidth memory (HBM) for high-performance computing. The ACE Google Value Chain Active ETF includes all three major HBM suppliers—Samsung Electronics, SK hynix, and Micron—capitalizing on surging demand. It also holds companies like Lumentum, which supplies high-speed optical communication components for TPUs, and TTM Technologies, a manufacturer of high-layer PCB substrates, directly benefiting from rising memory prices and increased infrastructure investment.

Investments in Google's strategic partners have also contributed to returns. The ETF portfolio includes companies such as Planet Labs, a satellite firm that recently signed a large-scale contract with the Swedish government, and AST SpaceMobile, expected to expand its commercial satellite network—both companies in which Google has made direct equity investments or maintains collaborations.

Kim Wonjae, Head of Global Equity Management at Korea Investment Management and responsible portfolio manager, stated, "Google is rapidly transforming into a vertically integrated 'AI full-stack company,' encompassing everything from AI semiconductors to models, infrastructure, and services. The ACE Google Value Chain Active ETF is designed to invest across the value chain that constitutes the core of Google's business." He added, "A key strength of active ETFs is their ability to immediately reflect market changes and Google's business direction. Currently, the focus is on AI infrastructure and the TPU value chain, but the portfolio will be flexibly adjusted as Google's strategic priorities shift in the future."

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