By Allan Lane, PhD, Founding Partner, Algo-Chain.

As the ETF industry launches into ‘Passive Investing 3.0’ in the year of the 50th Anniversary of Stanley Kubrick’s science fiction masterpiece 2001: A Space Odyssey, it seems fitting that we can now talk about new ETFs that fall into the Artificial Intelligence & Machine Learning (AIML) category.  The trend for themed ETFs continues apace, so what exactly constitutes an AIML based ETF and do they provide a good investment opportunity?

MV Index Solutions (MVIS), the indexing division of ETF issuer VanEck, has launched the MVIS Global Video Gaming and eSports Index, a pure-play index tracking firms involved in the development of video games and eSports events. “The video game industry has grown faster than expected in recent years and will stay on its current trajectory,” said Thomas Kettner, managing director at MVIS.

Famed US commodities investor Jim Rogers has launched the Rogers AI Global Macro ETF (BIKR US) through his investment management firm Ocean Capital Advisors, in partnership with white-label platform ETF Managers Group. The passively managed fund seeks to provide investors with an optimally weighted global portfolio – holding primarily single-country equity ETFs – based on macroeconomic factors by leveraging the capabilities of artificial intelligence (AI).

ETF Managers Group has announced the closure of the Spirited Funds/ETFMG Whiskey & Spirits ETF (WSKY US) following a review of market demand

Redwood Asset Management has launched the Marijuana Opportunities Fund (MJJ CN) on Canada’s NEO Exchange. The fund is a world first as it is currently the only actively managed ETF to focus exclusively on equities tied to the marijuana or marijuana-related industries. Peter Shippen, president and chief executive officer of Redwood Asset Management, said “the significant volatility of the sector and the ongoing evolution of the regulatory environment in the cannabis space have made active management the preferable way to invest.”

As more and more of our existence becomes digitised, cybersecurity is becoming ever more important. From our work lives, to our cars, to our homes, everything is increasingly controlled by code which, in conjunction with increased connectivity, means that cybersecurity will be of paramount importance to all of us in the years to come. For investors looking to exploit this theme, there are dedicated cybersecurity ETFs offering targeted exposure.

White-label ETF platform ETF Managers Group has announced it has decided to close the ETFMG ETFx HealthTech ETF (Nasdaq: IMED) based on an ongoing review of market demand. Effective immediately, IMED will increase its cash holdings in contemplation of liquidation and will no longer accept creation orders.

European ETF industry veterans Hector McNeil and Nik Bienkowksi have announced the launch of HANetf, Europe’s first independent “white label” UCITS ETF platform. The platform, which is not linked to any existing issuer, will provide third-party asset managers from around the world with the infrastructure to build and launch ETFs into Europe without having to establish their own full-service business. The pair aim to disrupt the market by lowering the barriers to entry for prospective new ETF issuers.

White-label ETF platform ETF Managers Group (ETFMG) has changed the names of six ETFs within the ETF Managers Series Trust, rebranding the funds ‘ETFMG’ following a dispute with the ETFs’ original partner PureFunds and its founder Andrew Chanin. The funds in question offer a range of thematic equity exposures and include the commercially successful PureFunds ISE Cyber Security ETF (NYSE Arca: HACK), which holds more than $1.1 billion in assets under management.

The PureFunds ISE Big Data ETF (NYSE Arca: BIGD) and the PureFunds Solactive FinTech ETF (Nasdaq: FINQ), a collaboration between PureFunds and white label ETF provider ETF Managers Group, are to close.