KB Asset Management launches AI NAND memory ETF

KB Asset Management has launched the ‘RISE Global AI NAND Memory Semiconductor’ ETF, the first in South Korea to focus specifically on the NAND memory value chain. The fund aims to capitalize on the increasing demand for data storage driven by the expansion of artificial intelligence, particularly as the industry shifts from AI training to inference.

The ETF invests in 10 companies across South Korea, the United States, and Japan that either directly produce NAND flash or provide NAND-based storage solutions and infrastructure. Approximately 70% of the portfolio is allocated via equal weighting to four core companies that produce NAND flash or storage solutions, while the remaining 30% targets the broader memory and storage infrastructure value chain.

Key holdings include Samsung Electronics, SK hynix, SanDisk, Kioxia, and Micron Technology. The fund utilizes the ‘iSelect Global AI NAND Memory Semiconductor Index’ as its benchmark, which employs natural language processing (NLP) to select stocks with high keyword scores related to AI-essential memory components.