Amundi cross-lists artificial intelligence ETF on Xetra and Borsa Italiana

Nov 20th, 2018 | By | Category: Equities

Amundi has cross-listed its Amundi Stoxx Global Artificial Intelligence UCITS ETF onto Xetra and Borsa Italiana.

Amundi cross-lists artificial intelligence ETF on Xetra and Borsa Italiana

AI refers to the science of creating computer programmes and machines that exhibit human-like intelligence and cognitive skills.

The fund, which debuted on Euronext Paris, provides exposure to equities listed globally that are closely related to the theme of artificial intelligence (AI).

AI refers to the science of creating computer programmes and machines that exhibit human-like intelligence and cognitive skills.

It includes technologies ranging from machine learning to natural language processing and computer vision.

The AI revolution is expected to have a significant impact across many sectors and geographies in the coming years.

The fund tracks the Stoxx AI Global Artificial intelligence ADTV5 Index which screens the parent Stoxx Developed and Emerging Markets Index universe for companies that invest heavily in the development of new AI technologies and are thus considered to be well-positioned to benefit from the increased adoption of AI.

Harnessing data from Yewno, a provider of AI solutions to the financial sector, the systematic selection process analyses stocks according to two metrics: AI exposure and AI contribution.

The former compares each company’s total registered AI patents over the most recent three-year period to the total number of AI patents registered globally, and the latter weighs the percentage of each company’s total patents relating to AI, again over the most recent three years.

The methodology screens out those companies that do not sit within the top three quartiles of each category.

The remaining companies are then screened for liquidity, with the index comprising only those stocks that have a three-month average daily trading value greater than €5 million. Constituents are then equally weighted.

Over half (53.7%) of the index is currently allocated to stocks listed in the US with a further fifth (19.4%) allocated to stocks from Japan. The next largest country exposures are Taiwan (4.6%) and South Korea (4.1%).

Technology stocks make up the largest sector allocation with a weight of 39.3%, followed by companies in the industrial goods & services (22.0%), automobiles & parts (8.4%), and telecommunications (6.8%) sectors.

The surge in interest in AI has had a positive effect on stock prices of firms associated with theme with the fund’s index having significantly outperformed its parent index over the past one, three, and five-year periods (data as of the end of October 2018).

Its annualized five-year return is 15.7%, compared to 10.7% for the parent universe, although annualized volatility has been slightly higher at 13.7% compared to 12.9% for the parent.

The fund comes with an expense ratio of 0.35%.

It is available to trade in euros on Xetra, Borsa Italiana, and Euronext Paris under the tickers GOAI GR, GOAI IM, and GOAI FP respectively.

Since its launch in September 2018, the ETF has accumulated approximately €100 million in assets under management.

Tags: , , , , , , , ,

Leave a Comment