Volatility rises amid concentration in AI and semiconductors... KB Asset Management spotlights ETF based on Buffett’s investment strategy

[Financial News] As investment funds concentrate in select sectors such as artificial intelligence (AI) and semiconductors, adding to stock market volatility, KB Asset Management has presented an exchange-traded fund (ETF) based on Warren Buffett’s investment portfolio as an alternative for investors.
According to KB Asset Management on the 10th, the RISE Berkshire Portfolio TOP10 ETF invests in Berkshire Hathaway (BRK.B) as well as the top 10 stocks in the investment portfolio Berkshire Hathaway discloses to the U.S. Securities and Exchange Commission (SEC). It reflects Buffett’s investment approach, which prioritizes companies’ long-term competitiveness and intrinsic value over short-term share price movements.
Its recent returns have also outperformed major U.S. stock indexes. As of the 5th, its return over the previous month stood at 6.62%. This contrasts with the Nasdaq 100 and Standard & Poor’s (S&P) 500 indexes, which fell 8.49% and 1.10%, respectively, over the same period. Notably, the ETF rose 4.16% even on the 5th, when the KOSPI plunged by more than 5%.
Its major holdings include Apple Inc., Alphabet Inc., American Express, Bank of America, Coca-Cola and Chevron. The fund is structured to diversify investments across major U.S. companies in a range of industries, including financials, consumer goods, information technology (IT) and energy.
The underlying index is the Solactive Berkshire Portfolio Top10 Index, which is calculated based on Berkshire Hathaway’s disclosed 13F holdings data. Its constituent stocks and investment weights are regularly adjusted according to the index’s methodology, and its total expense ratio is 0.01% per year. It is also available through defined contribution (DC) retirement pension plans, individual retirement pension (IRP) accounts and pension savings accounts.
“As investor interest, which had been concentrated in specific sectors such as AI and semiconductors, expands to a wider range of industries, the importance of sector diversification is also growing,” said Yuk Dong-hwi, head of the ETF Product Marketing Division at KB Asset Management. “The RISE Berkshire Portfolio TOP10 ETF is distinctive in that it provides access to leading global companies across a range of sectors, including financials, consumer goods, IT and energy.”
[email protected] Lee Jeong-hwa Reporter