"Jensen Huang, CEO of NVIDIA, has declared that the next phase of AI is 'Physical AI.' As we enter the era of Physical AI, South Korean companies with global manufacturing competitiveness, particularly Hyundai and Kia, are increasingly standing out in the market," said Kim Tae-woo, CEO of Hana Asset Management, during a press conference on June 9 in Seoul.
Investor interest has recently shifted from major semiconductor stocks like Samsung Electronics and SK Hynix to the Hyundai Group. As Physical AI emerges as the next growth axis in the AI industry, the launch of exchange-traded funds (ETFs) featuring Hyundai and Kia is gaining momentum.
On this day, Hana Asset Management launched the '1Q Hyundai Kia Bond Mixed 50' ETF. This product invests 25% each in Hyundai and Kia, totaling 50%, while the remaining 50% is allocated to government bonds and monetary stabilization securities with a maturity of six months or less. It tracks the 'KEDI Hyundai & Kia Bond Mixed 50 Index' and has a total expense ratio of 0.10% per year.
The structure of the ETF is also notable for targeting retirement pension investors. While the investment in risk assets is limited to 70% in retirement pension accounts, this product, as a second-generation bond mixed ETF reflecting retirement pension supervision regulations, is not subject to risk asset investment limits, allowing for a maximum 100% allocation within retirement pension accounts. Additionally, when investing alongside stock ETFs like 1Q 200 Active, the stock exposure in retirement pension accounts can be increased to as much as 85%.
Kim Seung-hyun, head of the ETF and Quant Solutions Division, emphasized, "At this point, the core of the AI wave is Physical AI. The Hyundai Group, with its global manufacturing competitiveness, particularly Hyundai and Kia, is at the center of this development." He further described the product as one that combines the advantages of stocks and bonds by investing in both companies and short-duration bonds.
As the perception of Hyundai Group as a leading beneficiary of Physical AI spreads, competition among asset management firms to launch ETFs is intensifying. On the same day, Samsung Asset Management also launched the 'KODEX Hyundai Robotics Value Chain TOP3 Plus' ETF, which includes Hyundai, Kia, Hyundai Mobis, Hyundai AutoEver, and Hyundai Glovis.
* This article has been translated by AI.
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