Samsung Active Asset Management Launches KoAct AI Infrastructure Active ETF Benchmarked Against Solactive Korea AI Infrastructure Index
The global AI infrastructure market has grown significantly against the backdrop of increasing global adoption of AI technologies across various industries, driven by the data explosion and advancements in AI algorithms. In response to this fast-growing industry, Solactive is pleased to announce that Samsung Active Asset Management has listed the KoAct AI Infrastructure Active ETF, benchmarked against the Solactive Korea AI Infrastructure Index.
Undergoing rapid growth amidst the blooming AI transition, the global AI infrastructure market is set to expand rapidly and reach approximately USD 223 billion by 2030 from its 2023 valuation at USD 57 billion with a compound annual growth rate (CAGR) of c. 30% from 2024 to 2030[1], making it a highly attractive investment opportunity for international investors. Home to some of the most critical semiconductor and tech companies, South Korea is well-positioned for the development of AI and in particular the AI infrastructure ecosystem that is poised for strong government support and favorable policies such as the National Artificial Intelligence Strategy and the Digital New Deal, further fostering AI development and innovation.[2]
The Solactive Korea AI Infrastructure Index aims to capture the performance of the top 30 South Korean companies that contribute to the infrastructure supporting Artificial Intelligence technologies and applications. The constituents are selected and weighted by market capitalization, as well as by their revenue generated in the three major sectors semiconductor, power infrastructure and network, with a weighting capped at 40%, 30% and 30%, respectively. Thereby, the index offers investors strategic exposure to the highly relevant AI infrastructure ecosystem and companies with advanced technological capabilities fueling the continued innovation in global AI developments.
The ETF listed on 9 July 2024 on the Korea Stock Exchange (KRX) with the ticker code 487130 KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “As a leader in advanced technology, South Korea’s progress in AI infrastructure developments present a tremendous investment opportunity. We are very pleased to partner with Samsung Active Asset Management in launching this product that uses our Korea AI Infrastructure Index as a benchmark and we look forward to further providing the tools that offer investors access to this dynamic sector.”
[1] https://www.grandviewresearch.com/press-release/global-ai-infrastructure-market
[2] https://asianinsiders.com/2024/04/02/the-korean-artificial-intelligence-industry/