Pictet’s U.S. ETF Debut: AI, Automation & Climate

After years of success in Europe, Pictet Asset Management is making its move into the U.S. ETF market. Head of ETF Distribution Benjamin Becker explains the firm’s strategy, its focus on active management, and how themes like AI and sustainability fit into its approach.

^Disclosures

^{Artificial Intelligence Models and Data Risk. The Fund relies heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, the Fund’s strategy may not be successfully implemented and the Fund may lose value. If the model or data are incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the model or data been correct and complete.}

^{Risks Relating to Companies Focused on Robotics, Cybersecurity, Semiconductors and Software. The Fund may be particularly sensitive to the risks affecting companies focused on robotics, cybersecurity, semiconductors and software. These risks include, but are not limited to, small or limited markets for such securities, changes in business cycles, world economic growth, rapidly changing technologies, rapid obsolescence of products and services, increasing regulatory scrutiny, and changes in government regulatory requirements.}

^{Equity Securities Risk. Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes. The value of a security may decline for a number of reasons that may directly relate to the issuer as well as due to general industry or market conditions.}

^{Foreign Securities Risk. The Fund invests in foreign securities, which are generally riskier than U.S. securities. As a result the fund may be subject to foreign risk, meaning that political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), natural disasters and public health emergencies occurring in a country where the fund invests could cause the fund’s investments in that country to experience losses.}

^{Sustainability & ESG Data Risk. The risk arising from any environmental, social or governance events or conditions that, were they to occur, could cause a material negative impact on the value of the investment.}

^{“Cleaner Planet” Investing Risk. The returns on a portfolio of securities that excludes companies that have not adopted practices and policies to support the transition to a more sustainable economy may trail the returns on a portfolio of securities that includes companies that have not adopted these practices and policies.}