A new filing from Global X looks to exploit a growing technology trend. The Global X Artificial Intelligence & Big Data ETF will cover companies that operate in the areas of artificial intelligence development and analytics.
The fund’s underlying index requires that potential components meet minimum size and liquidity requirements and be listed as one of 24 developed markets, a grouping that includes Hong Kong, Israel and South Korea.
Companies must be classified either as AI developers that use AI technology in their products and services, or apply it to large data sets in their possession, with the intention of extracting value, or as AI and big data analytics companies that provide AI software and services, hardware or quantum computing technology, according to the prospectus.
The index will weight its components by modified market capitalization.
Stock Selection Process
Although there are ETFs that use AI as part of their stock selection process, there are no ETFs specifically targeting the AI industry. An ETF targeting the big data industry shut down earlier this year after failing to gather significant assets.
The filing did not include an expense ratio, ticker or listing exchange.
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