Kiwoom Asset Management has added Micron Technology and SpaceX to its KIWOOM US AI Tech High Beta exchange-traded fund.
The asset manager said it replaced six of the ETF's 30 holdings in a scheduled rebalancing and began applying the revised portfolio on the 6th. Micron Technology became the fund's largest holding with a weighting of 10%, followed by SpaceX at 7.70%.
Other new additions include Teradyne (3.36%), a maker of semiconductor test equipment and robotic automation systems; USA Rare Earth (2.60%), a rare-earth materials and permanent magnet supply chain company; INNIO (2.31%), which supplies gas engine power generation equipment for data centers; and MaxLinear (2.23%), a high-speed optical communications chipmaker. Semtech, Fabrinet, Lumen Technologies, ACM Research, Joby Aviation and Ultra Clean Holdings were dropped from the portfolio.
KIWOOM US AI Tech High Beta is the only ETF listed in South Korea that invests in USA Rare Earth, INNIO and MaxLinear. The company said it identified companies in materials, power and communications needed for the expansion of the AI industry by combining company analysis based on large language models with criteria for selecting high-beta stocks.
The ETF is a passive product that invests in the 30 U.S.-listed AI and frontier technology companies with the highest beta, a measure of sensitivity to market moves. It screens relevant companies through keyword analysis using LLMs, then selects investment targets based on beta. Holdings and weightings are adjusted quarterly, and newly listed companies can be included if they meet the requirements.
Individual weightings are calculated by giving equal consideration to market capitalization and beta, and no single holding may exceed 10% at a scheduled rebalancing. While the fund spreads investments across areas including AI cloud computing, quantum computing and power, its focus on stocks with high market sensitivity means prices can also swing sharply in a falling market.
"A high-beta strategy is a high-risk, high-return investment strategy that concentrates on stocks with high market sensitivity to pursue greater upside elasticity," said Lee Kyung-jun, head of the ETF management division at Kiwoom Asset Management. "In this rebalancing, we added companies in memory, the space industry and AI-related power, and invested in a rare-earth company for the first time, reflecting new trends in the market."
