The core material driving the AI (artificial intelligence) investment boom is undoubtedly semiconductors. In the ETF market alone, 91 domestic and foreign semiconductor-themed ETFs have been launched. As asset management companies compete for dominance in the semiconductor ETF sector, the product ranking first in returns since the beginning of the year is NH AM Asset Management's "HANARO Fn K-Semiconductor" (161% as of the 24th).
Kim Seung-cheol, Head of ETF Investment Division at NH AM Asset Management managing HANARO Fn K-Semiconductor, recently emphasized the "AI mega-trend" in a meeting with Money Today. This outlook is based on the expectation that bottlenecks caused by supply shortages during AI's development will benefit certain sectors. Taking this trend into account, Kim built an ETF lineup covering the entire AI value chain. The largest component consists of three semiconductor products: HANARO Fn K-Semiconductor and "HANARO Semiconductor Core Process Leading Stocks," which invest in domestic semiconductors and semiconductor equipment processes respectively, plus "HANARO US AI Memory Semiconductor TOP4+," launched last month to include overseas semiconductors as well.
Kim identified electricity as the next bottleneck. This is because abundant power supply is a prerequisite for operating AI data centers. He also anticipated that South Korea would reap indirect benefits amid the AI hegemony competition between the United States and China.
Kim stated, "Currently, U.S. power facilities are aging, and there is an urgent need to build nuclear power plants massively to handle electricity demands." He added, "With manufacturing technology in decline in the U.S., South Korea is practically the only country capable of building nuclear power plants." This means that South Korea is the only nation satisfying both conditions: security dynamics and nuclear power plant performance.
NH AM Asset Management holds several power-related ETFs, including "HANARO Nuclear iSelect" and "HANARO Power Facility Investment." In particular, HANARO Nuclear iSelect is a domestic nuclear power ETF launched proactively by the industry. Its net asset value reached 638.2 billion won as of the previous day, making it the nuclear-themed ETF with the largest net assets.
Next month, the company plans to launch an ETF covering the agentic AI value chain to expand its AI ETF lineup. The product was planned with the listings of Anthropic and OpenAI in mind. Kim said, "Once these two companies list, we plan to include them directly in the ETF through special index changes." He added, "We will construct a portfolio including Microsoft, Amazon, Meta, Alphabet, and other companies associated with these two firms."
Among various AI ETFs, he recommended "HANARO Global Physical AI Active" as the "core asset" within the portfolio. This is the first physical AI-themed ETF listed in Korea last year and also the first product Kim launched after assuming his position.
Kim explained, "Investment should focus on clear themes with reasons to rise like AI, and themes with guaranteed growth potential over the long term." He added, "In the AI industry, there is an endless possibility for promising companies to emerge suddenly at any time, making active strategies that can respond quickly particularly suitable."
Given that the recent domestic stock market has undergone corrections from its highs, he evaluated this as a good opportunity to diversify investments into assets with long-term growth potential. However, he added advice to "be sensitive to losses and insensitive to profits." Kim stated, "When stock prices drop by 10% to 20%, customers tend to wait until they recover their principal." He continued, "If prices fall by 10% to 20%, consider the reasons for the decline; if there is no reason for a rebound, it is better to decisively sell." He further added, "Even if you achieve 10% to 20% gains, rather than selling immediately, it is better to hold if you believe the upward trend will continue."
in STOCK
