Business · Markets · 1 hr ago
South Korean-listed AI infrastructure ETFs fall about 40% in three months
South Korean-listed ETFs that invest in US AI data center and optical communications companies have fallen about 40% in three months.
They attracted strong investment in the first half of the year, when these businesses were seen as major beneficiaries of AI demand.
In the second half, investor sentiment cooled amid concerns about funding across the AI industry and opposition to data centers reflected in the US midterm elections.
Neocloud companies that rent out AI computing capacity have seen sharp share-price swings despite reporting better-than-expected results.
Optical communications companies have also struggled to recover.
Analysts expect market volatility to continue until the new US Congress sets out regulations next year.
They advise investors to check which companies each ETF holds before investing.
South Korean-listed ETFs investing in US AI data-center and optical-communications companies have fallen about 40% in three months.
The funds attracted substantial investment in the first half of the year as investors sought exposure to AI demand.
Market sentiment cooled in the second half amid concerns about funding across the AI industry and opposition to data centers in the US midterm elections.
Neo-cloud companies reported better-than-expected results but their share prices remained volatile, while optical-communications companies struggled to rebound.
Experts expect volatility to continue until the new US Congress sets out the regulatory framework next year and advise investors to examine ETF holdings closely.
- Who
- South Korean investors in ETFs holding US AI data-center and optical-communications companies are affected.
- What
- The ETFs fell about 40% in three months.
- When
- The article was published on November 14, 2026; the decline was over the preceding three months.
- Where
- The ETFs are listed in South Korea and invest in US companies.
- Why
- Concerns about AI-industry funding and opposition to data centers in the US midterm elections weighed on sentiment.
This story does not have two clearly opposing sides.
The ETFs attracted substantial investment as AI demand made their holdings prominent beneficiaries.
Market sentiment toward the funds cooled.
The ETFs fell about 40%.
Maeil Business published its report on the decline and outlook.
- Three-month decline
- About 40%
- ETF listings
- South Korea
- Underlying companies
- US AI data-center and optical-communications companies
- Publication date
- November 14, 2026
- Expected volatility
- Until the new US Congress sets out the regulatory framework next year