KB Asset Management launches Korea's first NAND value-chain ETF, targeting AI storage demand

KB Asset Management announced Tuesday it will launch the RISE Global AI NAND Memory Semiconductor ETF — the first product in South Korea to focus exclusively on the global NAND memory chip value chain — amid surging data storage demand driven by the spread of AI.

As the AI industry expands rapidly, semiconductor investors are shifting their attention beyond GPUs and HBM to the data storage segment. The growing volume of data that AI generates and processes is raising the strategic importance of solid-state drives and NAND memory chips.

Particularly as AI agents and generative AI services proliferate, the volume of data that enterprises and cloud providers must handle is expected to rise sharply, driving further demand for enterprise SSDs and NAND memory chips.

The RISE Global AI NAND Memory Semiconductor ETF is designed to capitalize on AI-driven data storage demand by selecting globally listed companies that either manufacture NAND flash directly or operate NAND-based storage solution and infrastructure businesses.

Seventy percent of the portfolio will be allocated equally among four core global companies that produce NAND flash or provide NAND-based storage solutions, while the remaining 30 percent will consist of companies across the broader memory and storage infrastructure value chain.

The fund is structured to invest across the global NAND value chain by incorporating companies from major markets including South Korea, the United States and Japan, reducing concentration risk tied to any single country or company.

As of Tuesday, the ETF's top holdings are Samsung Electronics (19.9 percent), SK hynix (18.8 percent), SanDisk (16.4 percent), Kioxia (12.3 percent), Micron Technology (11.4 percent), Lam Research (7.1 percent), Marvell Technology (3.6 percent), Seagate Technology (3.5 percent), Western Digital (3.0 percent) and Tokyo Electron (2.9 percent).

"As AI's center of gravity shifts from training to inference, the strategic value of enterprise SSDs and NAND memory chips will only grow," said Yuk Dong-hwi, head of KB Asset Management's ETF product marketing division. "We designed the RISE Global AI NAND Memory Semiconductor ETF to give investors concentrated exposure to the world's leading NAND companies, including Samsung Electronics, SK hynix, SanDisk and Kioxia."

KB Asset Management has been accelerating its new product launches in recent months. On Aug. 11, it released the RISE US Space Satellite Communication ETF, which invests in major American space and satellite communication companies. The fund targets 10 US companies across four segments — satellite manufacturing and launch, satellite communication equipment and networks, satellite communication services, and satellite data and services — with key holdings including SpaceX, Lumentum Holdings, Ciena and Rocket Lab. Any single holding is capped at 25 percent, and the portfolio is rebalanced four times a year.