Two ACE exchange-traded funds in Korea top performance charts, reflecting renewed investor interest in AI and biotech supply chains following strong corporate earnings and structural growth prospects.
한국투자신탁운용 said on Tuesday that two of its ACE exchange-traded funds have moved to the top of the performance table among Korea-listed value chain ETFs, reflecting renewed investor interest in artificial intelligence and biotech-linked supply chains.
According to data from the Korea Exchange, the ACE Eli Lilly Value Chain ETF posted a 13.59% return over the past three months, ranking first among 22 domestically listed value chain ETFs as of August 11. The ACE Microsoft Value Chain Active ETF followed in second place with a 6.17% three-month gain. Over six months and one year, the Eli Lilly fund returned 5.15% and 39.91%, while the Microsoft fund delivered 28.20% and 18.36%.
The funds are designed to invest not only in leading companies in each industry but also in key suppliers and other firms across the wider ecosystem. That structure appears to have worked in a market where the largest technology shares have at times been volatile, with investors worried about the pace of capital spending and whether demand for AI chips had become overheated.
Recent corporate results helped shift that mood. Microsoft reported stronger-than-expected fiscal fourth-quarter earnings in late July, driven by growth in AI infrastructure and cloud services, with revenue rising 18% year on year to $90.01bn and annual sales surpassing $331bn. Eli Lilly also delivered an earnings surprise after second-quarter revenue jumped 48% on robust demand for its obesity and diabetes treatments, reinforcing the market’s enthusiasm for the wider pharmaceutical value chain.
Nam Yong-soo, head of the ETF division at Korea Investment Management, said the performance of the ACE value chain products reflected a design that spreads risk across individual stocks while capturing the growth drivers of firms central to their supply networks. He added that value chain investing is best understood as a long-term asset allocation strategy tied to structural growth trends, suggesting that regular, long-term contributions may help investors manage volatility while seeking returns. As with all the funds mentioned, past performance does not guarantee future results and investors could lose principal.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
