Kiwoom Asset Management Launches 'KOSEF US Quantum Computing ETF'

Kiwoom Asset Management announced on the 12th that it will list the exchange-traded fund (ETF) "KOSEF U.S. Quantum Computing," which invests in U.S. companies leading the quantum computing industry, on the 17th.

Amid growing interest in quantum computing-related stocks such as IonQ, this is the first time an ETF targeting the quantum computing industry has been launched in the domestic ETF market.

The KOSEF U.S. Quantum Computing ETF includes major companies across the entire quantum computing value chain, from hardware and infrastructure including quantum computers to related software and services. It evenly covers quantum technology-specialized startups like IonQ as well as big tech companies expanding their quantum computing businesses based on advanced technology.

The ETF invests in 20 companies headquartered in North America and listed on U.S. stock exchanges that are engaged in quantum computing-related businesses. As of the end of last month, based on the underlying index, IonQ (24.7%) holds the highest weighting. Other significant holdings include Marvell Technology (8.2%), Honeywell International (7.0%), NVIDIA (6.7%), and IBM (6.7%). Amazon, Palo Alto, Alphabet, Oracle, and Intel are also included. The underlying index is the "Solactive U.S. Quantum Computing Index," calculated by the global index provider Solactive.

Quantum computers are called the "ultimate computers" because they can perform ultra-high-speed calculations surpassing supercomputers. Quantum computers operate using "qubits," which can simultaneously hold the states of 0 and 1. Utilizing qubits allows the representation of numerous possibilities simultaneously and reduces the number of calculations, enabling the rapid discovery of optimal solutions.

Quantum computing is useful for solving problems that involve handling large amounts of information or countless possibilities to find the optimal answer under given conditions. Representative applications include artificial intelligence (AI) machine learning, route optimization in logistics and aerospace industries, new drug and new material development, and financial portfolio optimization. For this reason, quantum computing is regarded as a "game changer" that will transform various industries such as AI, transportation and logistics, aerospace, pharmaceuticals and chemicals, and finance.

The quantum computing industry is now entering the early stages of growth and is evaluated to have enormous growth potential in the future. According to the Ministry of Science and ICT's "2023 Quantum Information Technology White Paper," the global quantum computing market is expected to grow from KRW 18.8352 trillion in 2023 at an average annual rate of 30.9%, reaching KRW 123.8263 trillion by 2030.

Jung Sung-in, head of the ETF division at Kiwoom Asset Management, said, "Quantum computing is expected to play an essential role in the growth of advanced industries, including the AI industry," adding, "From the perspective of early entry into an innovative industry that will grow rapidly in the long term, it is worth paying attention to the quantum computing ETF."

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