Software ETF Rebounds as AI Cybersecurity Stocks Rally; SOL Posts 31.88% Six-Month Return

[Financial News] As the benefits of artificial intelligence (AI) investment spread from semiconductors to software, cybersecurity companies have posted particularly strong share-price gains. The SOL US AI Software ETF, which holds related stocks among its key investments, also recorded a strong return.
Shinhan Asset Management said on the 18th that the SOL US AI Software ETF posted a six-month return of 31.88% as of the 17th. Among U.S. AI software-themed ETFs listed in South Korea, it recorded the strongest returns over three months, six months, since the beginning of the year, and one year.
As uncertainty grows over whether the Federal Reserve System (Fed) will raise interest rates further amid the burden of high oil prices and elevated interest rates, software companies with stable, subscription-based cash flows are gaining attention for their defensive strength.
Cybersecurity companies have stood out even within the software sector as the spread of AI agents increases the need for cybersecurity investment. As AI moves beyond simple question-and-answer functions to perform tasks autonomously and gain access permissions, spending to protect data and models has become increasingly important.
The easing of concerns over software companies' ability to monetize AI also played a role, as valuations came under greater pressure following the recent semiconductor-led AI rally. Expectations for AI monetization by software companies rose after AI data platform company Snowflake announced a rebound in its net revenue retention rate and a large-scale partnership with Amazon Web Services (AWS).
Cybersecurity stocks made a notable contribution to the performance of the SOL US AI Software ETF. Over the six months through the 17th, Palo Alto Networks, CrowdStrike, and Fortinet gained 121.68%, 126.85%, and 107.53%, respectively.
Kim Jeong-hyeon, head of the ETF Business Group at Shinhan Asset Management, said, "As the focus of AI investment shifts from building infrastructure to real-world applications, the earnings and share prices of software companies overall are improving. In particular, cybersecurity, which protects data and models, is emerging as a high-priority area for spending even within AI software."
Kim added, "The SOL US AI Software ETF is an investment product that selects companies with the ability to generate tangible revenue in the AI era, as well as companies with essential business models such as AI security."
[email protected] Bae Han-geul Reporter