KB Asset Management Launches "RISE Hyundai Motor Group Fixed Physical AI ETF"

KB Asset Management announced on May 12 that it will list the "RISE Hyundai Motor Group Fixed Physical AI" Exchange-Traded Fund (ETF), which focuses on investments in Hyundai Motor Group and its key partners.

Recently, in the global investment market, "Physical AI"—where artificial intelligence (AI) is actually deployed in the real world through robotics, autonomous driving, and smart factories—has been emerging as the next-generation industrial paradigm. In particular, Hyundai Motor Group is rapidly transforming itself into a future manufacturing company that goes beyond automobile production to encompass robotics, autonomous driving, and smart manufacturing systems. Leveraging its robotics competitiveness based on Boston Dynamics and an established mass production system, the group is cited as a frontrunner in the global Physical AI industry.

The newly listed RISE Hyundai Motor Group Fixed Physical AI ETF is designed to invest not only in the group’s core affiliates but also in major partners expected to directly benefit from the transition to robotics and AI software, enabling broad exposure to the entire Physical AI ecosystem.

This product distinguishes itself from conventional automobile ETFs, which focus mainly on internal combustion engine vehicles, by significantly increasing its allocation to robotics, AI software, and smart factory-related companies, emphasizing future growth potential. At the same time, by concentrating on companies with stable earnings and financial structures, the ETF aims to reduce volatility compared to general robotics-themed ETFs.

The underlying index for this product, the "KEDI Hyundai Motor Group Fixed Physical AI Index," fixes Hyundai Motor’s weighting at 25% and includes the top 14 stocks with the highest similarity scores in autonomous driving and robotics. To prevent excessive concentration, the maximum allocation per stock is capped at 15%.

As of May 12, the major stocks expected to be included are Hyundai Motor (25.89%), Hyundai Mobis (14.81%), Kia (13.77%), Rainbow Robotics (9.59%), LG Innotek (9.27%), Hyundai Autoever (7.58%), LG CNS (3.92%), Doosan Robotics (3.49%), Robotis (3.15%), and SL (1.81%).

Yook Donghui, Head of ETF Product Marketing at KB Asset Management, explained, "While past AI investments focused on building digital infrastructure through semiconductors and data centers, the next stage is expanding into a Physical AI era where AI interacts directly with the real world." He added, "Hyundai Motor Group is a company capable of connecting manufacturing, robotics, autonomous driving, and smart factories, with large-scale mass production systems, a global supply chain, manufacturing data, and software capabilities all in place." He continued, "The RISE Hyundai Motor Group Fixed Physical AI ETF, which concentrates investment in Hyundai Motor Group and its key partners, will become an efficient means to invest in the Hyundai Motor ecosystem, which stands at the core of global Physical AI industry growth."