STOXX launched an index that uses artificial intelligence-related algorithms to select companies exposed to the AI megatrend.
The STOXX AI Global Artificial Intelligence Index is made up of around 200 companies from a wide range of industries that invest heavily in the development of new AI technologies such as technology, telecommunications, finance and internet services.
According to STOXX CEO Matteo Andreetto, “AI technologies present an unrivalled investment opportunity, yet investors need solutions to discern hype from a real opportunity.”
The new STOXX AI index selects its constituents by using artificial intelligence technology – which STOXX says is the first thematic index to do so. To develop the index STOXX partnered with Yewno, an AI company based in Silicon Valley, which applied its knowledge graph technology to assess companies’ intellectual property (IP).
According to Yewno CEO Ruggero Gramatica, Yewno’s “underlying knowledge graph and AI technology screens a large volume of structured and unstructured data such as official filings and patents in order to detect companies that are investing in AI-related technologies and research.”
The underlying universe for the index composition is the STOXX Global and Developed Markets Total Market Index, which tracks around 7,000 stocks.
In addition to the innovative AI index, STOXX also launched the STOXX Global Artificial Intelligence Index today, which includes companies with a revenue exposure above 50% to AI-related sectors.
Amplify ETFs Delivers Blockchain-Based Exposure with New ETF
Amplify ETFs launched a new exchange-traded fund that invests in publicly-traded global companies leading the research, investment and revenue creation related to blockchain-based and other distributed ledger technologies
The Amplify Transformational Data Sharing ETF (BLOK) utilizes an actively managed approach to investing in blockchain-based technology, allowing the fund’s portfolio managers to respond in real-time to valuations, company fundamentals and announcements that may impact the blockchain marketplace.
BLOK will be co-managed by the Fund’s sub-advisers, Toroso Investments, LLC and CSAT Investments Advisory LP, and it has a net expense ratio of 0.70%.
REX Shares And Bank Of Montreal Launch 3x Leveraged “FANG+” ETN
REX Shares partnered with Bank of Montreal to launch a pair of exchange traded notes under the name REX MicroSectors.
The BMO REX MicroSectors FANG+ Index 3X Leveraged ETNs (FNGU) and the BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD) are based on the NYSE FANG+ Index.
The NYSE FANG+ Index provides exposure to a select group of heavily traded growth stocks of next generation technology and tech-enabled companies. These include the five core “FANG” stocks — Facebook, Apple, Amazon, Netflix and Alphabet’s Google — plus another five actively traded technology growth stocks — Alibaba, Baidu, NVIDIA, Tesla and Twitter.
The ETNs are senior, unsecured obligations of the Bank of Montreal.