Electric Power Equipment ETFs Surge Amidst Rising AI and Data Center Investments
Electric power equipment-themed exchange-traded funds (ETFs) have recently seen a significant surge due to increased power demand driven by advancements in AI technology. Notably, Mirae Asset's 'TIGER 200IT Leverage' ETF achieved the highest return with a 19.67% increase, followed by Samsung Asset's 'KODEX Secondary Battery Industry Leverage' ETF, which rose by 17.51%. This growth in ETF returns is attributed to a sharp increase in demand for electric power equipment due to expanded investments in data centers. Korean power equipment companies benefit from this trend, as the enhancement in AI data centers contributes to an upward cycle that aligns with the global power shortage and replacement demand, suggesting a long-term supercycle.
Meanwhile, Japanese semiconductor-related ETFs also performed well, influenced by a sharp rise in the shares of Advantest. In the ETF market, individual investors are actively purchasing ETFs tracking the KOSPI 200 index and U.S. S&P 500 index.
Moreover, nuclear-themed ETFs have posted positive returns on rising expectations from the Korea-U.S. nuclear cooperation project 'Manua,' and bio and healthcare-related ETFs continue to show an upward trend. The strong performance of power equipment and bio ETFs appears to be positively influenced by strengthened cooperation with NVIDIA in AI.
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