New ETF Targets AI, Big Data

Fund covers companies at the intersection of big data and artificial intelligence.

Global X has launched an ETF aimed at the big data and artificial intelligence (AI) space. The Global X Future Analytics Tech ETF (AIQ) invests in companies involved in the development and usage of those technologies.

AIQ is listed on the Nasdaq, and comes with an expense ratio of 0.68%.

The prospectus describes big data and AI as complementary technology themes, primarily with large collections of data being analyzed by artificial intelligence technology.

Methodology

The fund’s index selects its components from developed markets, focusing on those with at least $500 million in market capitalization that meet minimum liquidity requirements.

Companies can fall into one of two major categories: artificial intelligence developers or artificial intelligence, and big data analytics hardware.

The developers category includes companies that offer products and services that implement artificial intelligence technology or allow customers to use artificial intelligence to analyze big data. The hardware category includes companies that produce artificial intelligence components like semiconductors and memory storage, and companies involved in development of quantum computing technology, the prospectus says.

Firms in the index are rated on their exposure to these business areas and must meet a minimum score in one of the categories to be included in the index. Selected firms are weighted using a modified-market-capitalization approach, with reconstitutions occurring annually, according to the fund documentation.

This is not the first ETF to target big data, but it is the only one of its kind currently trading. The PureFunds ISE Big Data ETF (BIGD) launched in 2015 and closed two years later with minimal assets. However, AIQ fits in well with Global X’s full suite of thematic funds, the most prominent of which is the $2.6 billion Global X Robotics & Artificial Intelligence ETF (BOTZ).

Other thematic ETFs offered by the issuer cover social media, autonomous and electric vehicles and the fintech space. 

Contact Heather Bell at [email protected]