Lyxor has cross-listed its Lyxor Robotics & AI UCITS ETF on Euronext Paris.
The fund provides exposure to firms that stand to benefit from the growth of the robotics, automation, and artificial intelligence (AI) industries.
The fund, which launched in September 2018, offers exposure to firms that stand to benefit from the growth of the robotics, automation, and artificial intelligence (AI) industries.
It is linked to the proprietary Rise of the Robots NTR Index, created by SG Index, a division of Societe Generale, which the ETF tracks through synthetic (or swap-based) replication.
The index is based on the work of futurist Martin Ford, author of ‘Rise of the Robots: Technology and the Threat of a Jobless Future’.
The eligible universe of stocks includes both developed and emerging market companies that have been assigned to the robotics, automation, and AI industry classification by the equity research department of Societe Generale. Societe Generale is the parent company of Lyxor.
Each eligible company is assigned a composite score based on its relative positioning to other firms across three key ratios: R&D to sales, Return on Invested Capital (ROIC), and Sales Growth. Companies with higher ratios receive a higher composite score.
The index methodology selects the 150 stocks with the highest composite scores with constituents weighted by their composite score in order to enhance exposure to the quality and growth factor risk premia.
Stocks from the US account for over two-thirds (68.5%) of the total index weight, followed by Japan (5.4%), China (5.0%), and the UK (4.0%). In terms of sector exposure, information technology companies account for the lion’s share, representing nearly three-quarters (73.6%) of the total index weight, followed by consumer discretionary with 6.4% and health care with 6.0%.
The new share class trades in euros on Euronext Paris under the ticker ROAI FP. The fund is also available on the London Stock Exchange in US dollars (ROAI LN), on SIX Swiss Exchange in Swiss francs (ROAI SW), and on Xetra and Borsa Italiana in euros (ROAI GY and ROAI IM respectively). All share classes are income accumulating.
The ETF comes with a total expense ratio of 0.40% and has accumulated $150 million in assets under management.
Exposure to robotics and/or AI companies is one of the most popular thematic trends within the ETF industry. Issuers offering similar products in Europe include BlackRock, LGIM, DWS, WisdomTree, and Amundi.
The iShares Automation and Robotics UCITS ETF (RBOT LN) is the largest, housing over $2.5bn in AUM. It tracks the iSTOXX Factset Automation and Robotics Index and similarly comes with an expense ratio of 0.40%.