Mirae Asset to list ETF anchored by Hyundai Motor, LG Electronics in physical AI play

Mirae Asset Global Investments will list the TIGER Hyundai Motor LG Electronics Fixed Physical AI Value Chain ETF on Tuesday.

Jung Eui-hyun, head of the ETF management division at Mirae Asset Global Investments, said at a webinar held Monday morning on the company's YouTube channel "TIGER ETF" that physical AI is advancing beyond the digital environment into a stage where it can perceive, judge and act in real physical spaces, and that the scope of related industries will expand rapidly as a result.

He also said that as AI adoption in manufacturing and the spread of robots accelerate, companies that operate actual production facilities and can develop and manufacture robot hardware will play an increasingly important role.

A defining feature of the TIGER Hyundai Motor LG Electronics Fixed Physical AI Value Chain ETF is that Hyundai Motor and LG Electronics are each assigned a fixed 25% weighting — totaling 50% — at each periodic rebalancing. The remaining 50% is invested in companies that supply actual products to Hyundai Motor and LG Electronics, as well as other physical AI-related firms spanning robots, components, sensors, AI and software.

The projected portfolio as of Aug. 31 comprises LG Electronics (29.90%), Hyundai Motor (23.28%), Hyundai Mobis (15.94%), LG Innotek (5.95%), Autoliv (4.73%), Rainbow Robotics (3.50%), Hyundai Autoever (3.46%) and LG CNS (2.93%), among others. The weightings for Hyundai Motor and LG Electronics are scheduled to be adjusted to 25% each at the next periodic rebalancing in October.

"Hyundai Motor and LG Electronics share the common trait of having both robot development and mass production capabilities as well as an in-house value chain," Jung said. "Hyundai Motor focuses on factories while LG Electronics targets living spaces, so they are going after markets that do not overlap."

Hyundai Motor is expanding its use of robots primarily in factory and logistics settings. Hyundai Motor Group plans to invest 125.2 trillion won ($90.5 billion) domestically from 2026 to 2030, allocating 50.5 trillion won of that to future new businesses including robotics and AI.

LG Electronics is expanding its robot business with a focus on homes and living spaces while also strengthening its capabilities in key robot components. At CES 2026, the company unveiled its home robot "Cloid" and actuator "Axium."

Jung said that as physical AI enters the stage of actual deployment in industrial settings, mass production capability and hardware competitiveness in robotics are becoming increasingly important. Drivetrain components such as actuators and reducers account for more than half of humanoid robot production costs, meaning companies that can actually manufacture humanoid robots stand to gain a competitive edge.

The possibility that US restrictions on imports of Chinese-made humanoid robots could shift demand toward non-Chinese supply chains is also seen as an opportunity for South Korea's humanoid robot industry. Mirae Asset Global Investments said it expects domestic component makers to benefit from a supply chain realignment away from China, noting that a significant number of Korean parts companies are already positioned in drivetrain sectors — including actuators and reducers — which are widely regarded as key bottlenecks in humanoid robot mass production.

The government has also designated physical AI as a priority industry and is moving to support it. The Ministry of Trade, Industry and Energy named semiconductors, AI data centers and physical AI as its "three mega-projects" in June and announced a large-scale investment plan.