Samsung Active Asset Management has made significant moves to adapt to shifting market dynamics, particularly by altering the portfolio of its "KoAct Global AI & Robot Active" exchange-traded fund (ETF). Announced on February 28, 2025, the adjustment reflects a strategic shift from the U.S. AI and robotics sectors to Japanese industries, aligning with the latest trends within the artificial intelligence sphere.
The KoAct Global AI & Robot Active is recognized as Korea's first global AI and robotics ETF, which utilizes a diverse operational strategy. This strategy is pivotal because it focuses on different growth stages within the AI sector—ranging from foundational AI infrastructure to advanced AI services and maturing AI robotics.
Recently, the ETF has come under pressure due to the downturn of U.S. tech stocks, especially those listed on Nasdaq. To mitigate these challenges, Samsung Active Asset Management has actively re-balanced the ETF's holdings, reducing the percentage of U.S. companies from 92% at the end of the previous year to 74% as of late February 2025. Concurrently, the share of Japanese AI and robotics firms has surged from merely 1% to 17.2% over the same timeframe, indicating a clear strategic pivot.
Among notable Japanese firms included within the ETF’s new composition are Harmonic Drive Systems, which specializes in humanoid robot reducers; Hwanak, focusing on humanoid robot servomotors; and Kiens, known for its humanoid robot sensors. These companies exemplify Japan's enduring strength and innovation within the robotics industry.
The pivot also aligns with broader changes within the AI industry, whereby focus is shifting from companies solely developing AI models, often termed Generative AI, to those generating tangible profits through AI-fueled services. Key companies now featured prominently within the ETF include Palantir, renowned as a leader in enterprise AI; Appurbin, which specializes in AI-based advertising platforms; Samsara, which offers AI solutions for fleet management; and Upstart, known for its AI-enabled loan solution assessments.
"While U.S. big tech companies are expected to expand their investment in AI, they have made some profit due to various variables due to high valuation and policy uncertainty," said Yang Hee-chang, the manager at Samsung Active Asset Management. He emphasized the resilience of Japanese firms, noting, "Japanese companies have long maintained strong competitiveness in the robot and automation industries, and have recently expanded their weight due to positive changes such as the strong yen and improved corporate governance."
This growing interest and investment in robotics parallels the rapid evolution of the industry itself—once centered around Model Predictive Control (MPC) methods, it has now shifted toward reinforcement learning (RL) paradigms, propelling advancements at unprecedented rates. Such innovations are pivotal not just for development speed but also for practical applications across various sectors.
Interestingly, KoAct Global AI & Robot Active ETF has been reflecting these very trends, showcasing flexibility by adapting its investment strategies, appropriately prioritizing stages of growth within AI and robotics. The portfolio's current adjustments have led to its considerable growth, marked by almost 50 billion won net worth, proving attractive enough to be recently included within NH Bank's retirement pension options.
This evolution within Samsung Active Asset Management's ETF is indicative of larger trends at play within the global markets and the continuous advancement of technology-driven industries. Analysts and investors alike will be watching closely to see how these strategic choices impact not just the fund's performance but also the broader sectors of AI and robotics as they evolve.