WisdomTree launches Artificial Intelligence ETF on LSE


ETF and ETP sponsor WisdomTree has partnered with Nasdaq and the Consumer Technology Association (CTA) to launch an ETF providing unique exposure to the Artificial Intelligence (AI) sector.  

The WisdomTree Artificial Intelligence UCITS ETF has listed on the London Stock Exchange, with a total expense ratio (TER) of 0.40 per cent.
 
The ETF will provide investors with liquid and cost-effective access to this exponential technology megatrend that is driving efficiencies and new business capabilities across all industries globally and redefining the way we live and work.
 
Christopher Gannatti, WisdomTree Head of Research in Europe, says: “We are delighted to partner with Nasdaq and CTA, who are experts in AI and technology markets. We have worked together, leveraging our combined expertise, to re-define the AI investment landscape.”
 
“To capture the full economic value of AI we place companies in three categories; Engagers, Enablers and Enhancers*. When investors think of what this can bring to a portfolio, they should be thinking over a long time horizon and about how advances like autonomously driven cars, a digital workforce, mass facial recognition and other applications of intelligent machines could change the world,” adds Gannatti.
 
Rafi Aviav, WisdomTree Head of Product Development in Europe, says: “AI is a revolutionary technology and the market for AI products and services is expected to more than triple over the next three years. This fund offers a unique approach to capturing this expected growth, which is the result of a year-long collaboration between WisdomTree, Nasdaq and CTA.”
 
“The fund broadly represents the upstream and midstream parts of the AI value chain and so balances diversification with a focused exposure on those parts of the AI value chain that stand to gain the most from growth in the AI market,” adds Aviav.
 
There is no commonly used classification system that allows one to automatically choose companies engaged in the emerging AI space, so the research for the selection of index portfolio companies is conducted by experts with deep familiarity of the AI value chain and the technology markets more broadly. This ensures the portfolio remains focused on AI opportunities rather than becoming just another broad tech fund.
 
We believe the fund’s unique approach offers the best of both the active and passive investment worlds in accessing the AI megatrend. The fund’s portfolio companies are already capitalising on the AI opportunity across industries and are well positioned for AI’s growth,” says Aviav.
 
“AI is one of the key ‘ingredient technologies’ over the next decade – deployed everywhere from factory floors and retail stores to banks and insurance offices, creating new opportunities,” says Jack Cutts, senior director of business intelligence and research, CTA. “We’ll see this play out in January at CES 2019 – the most influential tech event in the world – where AI will be a dominant theme, showcasing the massive potential AI has to change our lives for the better. We’re excited to partner with Nasdaq and WisdomTree to make AI investible.”
 
“Artificial Intelligence is at an inflection point to drive further economic growth and create new areas of opportunity,” says Dave Gedeon, Vice President and Head of Research and Development for Nasdaq Global Indexes. “The Nasdaq CTA Artificial Intelligence Index serves as an important benchmark for tracking the adoption of AI across a broad range of economic sectors as this influential technology hastens advancements in productivity and capacity.”
 

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