Korea Investment Management’s ACE U.S. AI Tech ETF Sees Rapid Inflows Amid AI Sector Growth

• Launch Surge: The ETF saw 28 billion Korean won in net individual purchases right on its debut day.

• Five-Day Milestone: Cumulative net purchases exceeded 76 billion Korean won shortly after listing.

• Broader Impact: Investments cover the full AI value chain, including computing infrastructure, hardware, energy, and software, with returns reflecting market momentum.

Discover how Korea Investment Management’s ACE U.S. AI Tech Core Industry Active ETF is capturing AI innovation with rapid inflows of 76 billion KRW in days. Explore investment strategies now.

What is the ACE U.S. AI Tech Core Industry Active ETF?

The ACE U.S. AI Tech Core Industry Active ETF is an actively managed exchange-traded fund launched by Korea Investment Management on October 28, focusing on the transformative power of artificial intelligence across key U.S. industries. It dynamically allocates investments across computing infrastructure, AI hardware, energy infrastructure, and AI software to capture the evolving AI ecosystem. This approach allows the fund to adapt to shifting market trends, providing investors with exposure to the entire AI value chain while aiming for long-term growth in a rapidly advancing sector.

How does Korea Investment Management’s ETF cover the AI value chain?

The ACE U.S. AI Tech Core Industry Active ETF is designed to encompass the complete AI value chain, reflecting the dynamic nature of the industry where leading sectors evolve through different development stages. Korea Investment Management adjusts investment weights strategically across four core areas: computing infrastructure for data processing, AI hardware for specialized computing needs, energy infrastructure to support high-power demands, and AI software for applications and algorithms. This holistic coverage ensures the fund benefits from broad industry advancements, with on-chain data indicating robust performance metrics since inception.

Supporting this strategy, Nam Yong-soo, Head of the ETF Management Division at Korea Investment Management, emphasized in statements to local media that AI represents a megatrend reshaping industrial structures, from infrastructure to applications. He noted, “AI, big tech, and semiconductors are not short-term trends but fundamental transformations with broad benefits expected as changes accelerate.” This expert insight underscores the fund’s positioning to deliver value amid accelerating AI adoption.

Market data further illustrates the ETF’s appeal, with individual net purchases reaching 28 billion Korean won on launch day and accumulating to 76 billion Korean won within five days. Such inflows demonstrate investor confidence in AI’s structural renewal, which permeates daily life and industries alike. The firm’s approach avoids rigid sector bets, instead reflecting real-time market trends for optimized returns.

Frequently Asked Questions

What are the performance highlights of the ACE U.S. AI Tech Core Industry Active ETF?

The ETF has shown promising early performance, with cumulative individual net purchases surpassing 76 billion Korean won in its first five days. While specific long-term returns are still emerging post-launch, it builds on Korea Investment Management’s track record in tech funds, emphasizing dynamic adjustments to capture AI growth opportunities across the value chain.

Why invest in AI ETFs like those from Korea Investment Management now?

Investing in AI ETFs such as the ACE U.S. AI Tech Core Industry Active ETF is timely due to the ongoing structural evolution of AI technology, which is already integrating deeply into industries and daily applications. As Nam Yong-soo from Korea Investment Management explains, the focus has shifted from whether to invest in AI to determining the best strategies, making these funds ideal for capturing megatrend benefits in a straightforward, diversified manner.

Key Takeaways

• Rapid Adoption: The ETF’s launch on October 28 drew 28 billion Korean won in net purchases on day one, signaling strong demand for AI-focused investments.
• Comprehensive Coverage: By spanning the full AI value chain—including infrastructure, hardware, energy, and software—the fund adapts to industry shifts for sustained growth.
• Expert Guidance: Korea Investment Management views AI as a megatrend; investors should prioritize strategic allocation now to position for innovation-driven returns.

Conclusion

Korea Investment Management’s ACE U.S. AI Tech Core Industry Active ETF exemplifies the firm’s commitment to capturing the AI value chain through dynamic investments in core U.S. tech sectors. With impressive initial inflows of over 76 billion Korean won in just five days and expert endorsements highlighting AI’s transformative role, this fund offers a compelling entry into the megatrend. As AI continues to accelerate industrial changes, investors are encouraged to explore such opportunities for diversified exposure, staying ahead in the evolving landscape of technology-driven markets.

Korea Investment Management’s Broader Tech ETF Strategy

Korea Investment Management has been actively expanding its ETF offerings to emphasize U.S. technology and growth stocks, aligning with the rebranding of its ACE lineup. This strategic focus comes at a time when AI and related technologies are driving significant market momentum. The firm, a prominent player in asset management, draws on extensive experience to create products that resonate with investor demands for innovation-led growth.

One standout in this portfolio is the ACE U.S. Big Tech TOP7 Plus ETF, which targets seven leading U.S. tech companies, including Google, NVIDIA, Apple, and Microsoft. This fund is engineered to harness key growth drivers such as cloud computing, artificial intelligence, data centers, and platform ecosystems. Since its listing in September 2023, it has demonstrated resilience and appeal, with continuous capital inflows noted in on-chain data.

Performance metrics for the ACE U.S. Big Tech TOP7 Plus ETF are particularly noteworthy: it has achieved 16 consecutive days of individual net purchases and delivered a 6-month return of 45.28%, a 1-year return of 45.55%, and a post-listing return of 129.61%. These figures, as of early 2025, underscore the fund’s ability to generate stable returns amid volatile markets. Cumulative net individual purchases since the start of 2025 stand at 124 billion Korean won, reflecting sustained investor interest.

The Role of Semiconductors in AI and Tech Investments

Complementing its AI-focused products, Korea Investment Management launched the ACE Global Semiconductor TOP4 Plus ETF as part of its rebranded lineup. This fund concentrates on the four major pillars of the global semiconductor market: memory, non-memory, foundry, and semiconductor equipment. Semiconductors serve as foundational infrastructure for AI, data centers, and automotive electronics, making them indispensable in the tech ecosystem.

On-chain data reveals the ETF’s impressive scale, with assets under management reaching 632.7 billion Korean won. It has posted a 6-month return of 103.77% and a post-listing return of 377.34%, with share prices surpassing 40,000 Korean won. At the time of writing, Korea Investment Management’s stock trades around 172,399 KRW, indicating broader confidence in the firm’s direction.

The investment manager positions semiconductors not as a fleeting trend but as a core enabler of technological progress. By integrating these elements, Korea Investment Management provides investors with targeted exposure to high-growth areas without the need for individual stock picking. This ETF’s success further validates the firm’s expertise in navigating complex tech landscapes.

Investment Implications for the AI and Tech Sectors

The surge in demand for Korea Investment Management’s AI and tech ETFs highlights a pivotal shift in investor sentiment. AI’s permeation into everyday applications—from smart devices to industrial automation—creates widespread opportunities. The firm’s active management style allows for agile responses to market dynamics, ensuring portfolios remain aligned with emerging trends.

Nam Yong-soo has articulated that ACE ETFs categorize market trends into core investment axes, offering strategic alternatives tailored to varying risk profiles. For those seeking to capitalize on artificial intelligence innovation, the timing is optimal, as the sector’s influence expands with accelerating advancements. Korea Investment Management’s rebranded focus since enhancing its U.S. tech emphasis has positioned it as a leader in this space.

Overall, these ETFs represent a balanced approach to tech investing, blending diversification with targeted exposure. Investors benefit from professional oversight that mitigates risks while pursuing upside in megatrends. As the AI ecosystem matures, funds like these will likely play a central role in modern portfolios, driving long-term value creation.

Why Active Management Matters in AI ETFs

Active management in ETFs, as exemplified by the ACE U.S. AI Tech Core Industry Active ETF, provides flexibility in a fast-evolving field. Unlike passive funds, it enables real-time adjustments to investment weights based on industry developments. This is crucial in AI, where breakthroughs in hardware or software can swiftly alter value chain dynamics.

Korea Investment Management’s methodology involves continuous monitoring of market trends, ensuring the fund reflects the latest opportunities. For instance, as energy demands for AI computing rise, allocations to energy infrastructure can increase accordingly. This proactive stance has contributed to the ETF’s strong debut, with net purchases indicating market validation.

Expert commentary from the firm reinforces this: investing in AI is about strategic selection within the sector. By covering the entire value chain, the ETF minimizes concentration risks and maximizes participation in broad-based growth. Such insights from seasoned professionals like Nam Yong-soo enhance the fund’s credibility and appeal to discerning investors.