Kiwoom Asset Management Expands Engagement with Solactive Launching AI and Power Semiconductors ETFs

Solactive is pleased to announce that Kiwoom Asset Management is expanding its collaboration with the German index provider by introducing two new semiconductor ETFs that will track Solactive indices. These ETFs will offer South Korean investors the opportunity to harness the potential of the AI and power semiconductor industries.

The KIWOOM KOSEF Global AI Semiconductor ETF and the KIWOOM KOSEF Global Power Semiconductor ETF seek to track the performance of the Solactive Global AI Semiconductor Index (SOLAISM) and the Solactive Global Power Semiconductor Index (SOLPSMEP), respectively. Both funds are listed on 21 December on the Korea Stock Exchange (KRX) under the ticker symbols 473490.KS and 473500.KS.

With the rising demand for semiconductor devices across a variety of industries, the global semiconductor industry has undergone remarkable growth, emerging as a substantial economic force. It is projected that the industry’s revenue will reach US$ 553 billion in 2023, with an annual growth rate of 7.42%, ultimately leading to a market volume of US$ 736.4 billion by 2027¹.

The Solactive Global AI Semiconductor Index represents securities of companies within the semiconductor industry whose technological endeavors play a pivotal role in advancing the AI sector. The Solactive Global Power Semiconductor Index focuses on companies contributing to the power semiconductor industry. To be eligible for inclusion in these indices companies must be listed on exchanges in the United States, Europe, or South Korea.

Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are grateful and excited to expand our partnership with Kiwoom Asset Management as they introduce two innovative semiconductor ETFs tracking Solactive’s indices. These ETFs provide South Korean investors with an opportunity to participate in the potential of the fields of AI and power semiconductors. Power semiconductors, essential for managing electrical power across various applications, and the rapidly growing AI semiconductor sector are both key drivers of technological advancement. This extension of our collaboration underscores the shared innovation mindset between Solactive and Kiwoom Asset Management.”

Seongin Jeong, Head of ETF Marketing Business Department, said: “Kiwoom Asset Management is pleased to increase our product line up with Solactive, especially in AI and power semiconductor sectors. We believe the growth of AI industry will lead to growth in sales and profits of AI semiconductor sectors in the future. Also, there are unprecedented opportunities and growth in the power semiconductor industry with the transition to electric vehicles, expansion of new and renewable energy generation, and expansion of data center servers. We hope these products collaborated with Solactive will serve as a good vehicle for investors to tap on those potential industries.”

¹ Semiconductors Worldwide – Statista