South Korea’s leading robo adviser startup Fount Inc. is seeking to list two exchange-traded funds (ETFs) on the New York Stock Exchange in October to become the first local manager to debut and personally operate combined shares in the United States.

According to multiple sources from the financial investment industry on Thursday, artificial intelligence (AI)-based investment services provider Fount filed an application with the U.S. Securities and Exchange Commission (SEC) on Tuesday, local time, to list two metaverse and subscription economy themed ETFs.

So far Mirae Asset Investments is the only Korean manager making tangible results overseas. Mirae Asset made entry in the U.S. and Canada by acquiring an ETF-focused manager.

Fount is taking curated index and packaged ETF items to compete with global operators in the $6 trillion American ETF market.

Kim Young-bin, chief executive of Fount, confirmed that the company has submitted documents for NYSE listing to vie with theme-based ETF capacity.

The ETF listing will be made in October as it usually takes up to 75 days for review after documents are submitted.

AI-based Qraft Technologies from Korea is also managing four ETFs it listed in the U.S. Since it is an IT company, Fount would make the pure case of a Korean management company to list and operate ETFs in the U.S.

The metaverse-themed ETF Fount plans to list on the exchange will follow its own metaverse themed index, Fount Metaverse Index. The fund will have exposure to leading metaverse servicing companies like Apple, Facebook, and Roblox and also Naver and Kakao.

The fund basket will not include Samsung Electronics, unlike world’s first metaverse ETF Roundhill Ball Metaverse ETF.

The subscription economy-themed ETF will be world’s first of its kind following Fount Subscription Economy Index developed by Fount. The fund will invest in Netflix and Amazon.

Choi Bong-geun, chief economist at Fount, said that Fount will utilize its AI technology to decide on index formation and investment. The fintech firm will estimate one year’s worth revenue through machine learning and allow portfolio rebalancing once every year.

Fount’s ETF listing is largely attributed to its strategic partnership with local Exchange Traded Concepts (ETC) that provide comprehensive service so that small- and mid-size U.S. managers and overseas managers can list and manage ETFs on U.S. exchange. The four ETFs Qraft listed in the U.S. were also arranged through ETC.

ETC has so far provided services for 50 ETF listings. It has up to 7 trillion won ($6.1 billion) assets under management.

Fount is also considering adding the two themed-ETFs to its robo advisor portfolio. The Korean firm has been providing ETF portfolio consignment service that invests in various global ETFs listed in the U.S.

Fount, meanwhile, provides customized asset allocation portfolio based on Fount Market Score derived via combination of various economic and market indices. The company received investment advising license in November 2017 and investment discretionary license in February 2018.

The company launched a robo advisor mobile app in June 2018. It has 260,000 customers as of end of June, up from 2,580 in the end of 2018. Assets under management also more than six fold from 135.9 billion won to 870 billion won over the same period.

By Moon Ji-woong, Kim Jung-beom, Shin Hwa, and Lee Eun-joo

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