KODEX AI Power Core Equipment (487240) 🔎 In-depth

It tracks the iSelect AI Power Core Equipment Index (a price return index). The index is built by selecting Korean companies tied to power infrastructure, where demand is rising from the expansion of AI data centers and the replacement of aging grids. In other words, it focuses not on 'companies that make AI directly' but on companies that make 'the equipment that carries the electricity so AI can run.'

It is a plain 1x ETF that actually reflects the share prices of the power-equipment companies it holds and tracks their combined path. With no multiplier applied, it rises as much as the index rises and falls as much as it falls. Because it invests in Korean stocks, there is no currency effect. That said, being a theme product concentrated in a small number of names, its swings can be larger than the broad market depending on the power-equipment industry cycle or large order news.

Concentrated investment in the clear growth theme of AI power infrastructure is both its strength and its risk. When the theme is cruising, it can rise more than the broad market-representative index, but because it is tilted toward a few names and a single theme, its drawdowns can also be larger if the industry cools or bad news hits a specific company. Power equipment is an industry where it takes time from winning an order to delivering, so its nature is that you also have to watch the gap between order backlog and when it actually shows up in earnings.

In 2026, as power bottlenecks came into focus with the expansion of AI data centers, orders at Korean power-equipment companies rose sharply. The three major players, Hyosung Heavy Industries, LS Electric and HD Hyundai Electric, each booked large new orders in the first quarter of 2026 alone, and with US aging-grid replacement demand added on top, exports to the US of items such as extra-high-voltage transformers also increased substantially. This trend forms the backdrop for the companies this ETF holds, but a point to weigh together is that expectations are already substantially reflected, so individual companies' share prices tend to be quite volatile.

In a nutshell, it is a product that pools investment into the electrical-equipment companies seen as the 'hidden beneficiaries' of the AI boom. To run AI you ultimately need electricity, so it is a theme ETF that bets on the companies making the transformers and cables that carry that electricity.