Kiwoom Asset Management is rolling out an exchange-traded fund that invests in makers of multilayer ceramic capacitors (MLCCs) and semiconductor packaging substrates, two core components of artificial intelligence servers.
The firm said on Oct. 12 that the KIWOOM Global MLCC & AI Substrate TOP4+ ETF will begin trading on Oct. 13. The fund tracks the iSelect Global MLCC & AI Substrate TOP4+ Index and invests in 10 listed companies worldwide. The four highest-scoring stocks receive 80% of the portfolio: 25% each for the top two names and 15% each for the third and fourth. The remaining six holdings are weighted by free-float market capitalization.
The current top holdings are Murata Manufacturing and Samsung Electro-Mechanics (009150.KS) at 25% each, followed by Taiyo Yuden and LG Innotek (011070.KS) at 15% each. Murata produces high-value MLCCs for AI servers and automotive electronics, while Samsung Electro-Mechanics runs both MLCC and flip-chip ball grid array (FC-BGA) businesses. Taiyo Yuden specializes in compact, high-capacity MLCCs, and LG Innotek is expanding its FC-BGA operations.
The remaining 20% is spread across Doosan (000150.KS), Ibiden, TDK, ISU Petasys, Daeduck Electronics (353200.KS) and Simmtech. The structure covers not only MLCCs and FC-BGA but also AI server components and related materials such as high-layer-count printed circuit boards (PCBs) and copper clad laminates (CCLs).
Demand for core server components is rising as global big tech firms expand AI infrastructure spending, according to the company. AI servers consume more power and process more data than conventional servers, increasing the importance of MLCCs, which help ensure stable power delivery, and substrates, which transmit signals from high-performance chips at speed.
"This is the first product in the domestic ETF market to present MLCCs and AI substrates as a core investment theme," said Lee Kyung-jun, head of the ETF management division at Kiwoom Asset Management. "We designed it so investors can gain exposure to major Korean and Japanese companies in a single product, and it should offer a new option for those seeking broad exposure to growth in the AI industry."