KB Asset Management will introduce an exchange-traded fund (ETF) investing in Hyundai Motor Group and its key partners focused on physical AI.

KB Asset Management said it will list the RISE Hyundai Motor Fixed Physical AI ETF on May 12. The ETF invests in core Hyundai Motor Group affiliates as well as partner companies expected to benefit from the group’s shift toward robotics and artificial intelligence (AI).

The benchmark index is the KEDI Hyundai Motor Fixed Physical AI Index. It holds Hyundai Motor at a fixed 25 percent and invests in the top 14 stocks with high similarity scores in physical AI-related fields such as autonomous driving, robotics and factory automation. It applies a market capitalisation-weighted approach, while capping each stock’s maximum weight at 15 percent to ease concentration in specific names.

As of May 12, major planned holdings include Hyundai Motor at 25.89 percent, Hyundai Mobis at 14.81 percent, Kia at 13.77 percent, Rainbow Robotics at 9.59 percent, LG Innotek at 9.27 percent, Hyundai AutoEver at 7.58 percent, LG CNS at 3.92 percent, Doosan Robotics at 3.49 percent, Robotis at 3.15 percent and SL at 1.81 percent.

Donghwi Yook (육동휘), head of ETF product marketing at KB Asset Management, said, "Going forward, AI will expand into an era of physical AI that moves directly in the real world."

He added, "Hyundai Motor Group is a company that can connect manufacturing, robots, autonomous driving and smart factories," and said, "It simultaneously has a large-scale mass production system, a global supply chain, manufacturing data and software capabilities."