Shinhan Asset Management announced on the 15th that individual investors have recently been flocking to the ‘SOL U.S. AI Software’ ETF, which allows investments in core U.S. artificial intelligence (AI) software companies.
Since the end of October, American AI software companies have announced good performance one after another, and major AI software companies such as Palantir, Salesforce, Oracle, and ServiceNow have all recorded 52-week highs. SOL American AI Software, which includes these companies in a high proportion, also rose 6.76% over the past week, and recorded one-month and three-month returns of 14.18% and 24.92%, respectively. The net individual purchase amount of 8.5 billion won inflow in the past week following the U.S. presidential election is a more than 13-fold increase compared to October.
Kim Jeong-hyeon, head of ETF business at Shinhan Asset Management, said, “The trend of AI themes that the market expects and accepts is moving from semiconductors to power infrastructure to software,” adding, “AI software is a generative AI value such as AI platforms, applications/services, and cloud.” “It is necessary to pay attention to the upcoming time of AI software, as it covers all areas that are at the forefront of the chain and related companies are already producing visible results,” he said.
Recently, a series of good news from American AI software companies has become a hot topic in the market. Palantir, an AI-based big data analysis and integrated data platform company, soared 44.5% in about 7 trading days after the earnings announcement due to recent inclusion in the S&P 500 index, strong quarterly performance, and announcement of ‘Edge’ AI new technology. As the second Trump administration is expected to repeal the Biden administration’s AI executive order and strengthen the use of AI for military purposes, it appears to be emerging as a main player in AI software.
Director Kim said, “The United States has entered an interest rate cut cycle, and the presidential election, which was the biggest issue in the second half of the year, has been concluded, so the postponed budget execution will begin and the performance of software companies is expected to gradually become more visible,” adding, “We expect that the performance of software companies will gradually become more visible in 2025 as well.” “It is expected that there will be investment opportunities, and since we entered the cycle relatively late in AI infrastructure and hardware, there is a need to diversify the AI investment portfolio with AI software,” he emphasized.
‘SOL US AI Software ETF’ was listed in May as the second product of the SOL US AI Series. Major stocks are ▲Microsoft (17.3%) ▲Salesforce (9.43%) ▲Oracle (8.3%) ▲ServiceNow (7.37%) ▲Palantir (7%) ▲Adobe (6.9%) ▲Palo Alto (5.33%) ▲Fair Isaac (4.46%), etc. In particular, Salesforce, Adobe, Palantir, Palo Alto, and Fair Isaac are being incorporated at the highest proportion among domestic exchange-traded funds (ETFs).
Director Kim added, “The SOL U.S. AI Software ETF is suitable for responding to changes in the AI cycle because it differentiates its portfolio around the top companies in each AI software field.”
