Let’s analyze new products on the extraordinary megatrend of artificial intelligence. How to ride a rising wave with ETFs.
As part of ARK Invest ’s recent entry into the European ETF market, the launch of three new actively managed ETFs represents a significant geographic expansion for the US fund manager. These funds are designed to capitalize on three emerging sectors: technology innovation, genomics, and artificial intelligence, reflecting some of the most influential trends in the global investment landscape. Their initial listing on the Deutsche Börse and imminent expansion to other major European stock exchanges reflects a strategy aimed at tapping into the growing demand for innovative financial instruments in Europe.
Topics of the moment: Innovation, genome, and artificial intelligence
1. Innovation: the ARK Innovation UCITS ETF (ARKK), the first of the three, follows the investment philosophy of the American ARKK, targeting companies that distinguish themselves by adopting emerging technologies. ARKK’s selection criterion is based on the potential for "disruptive innovation", a concept that indicates a company’s ability to overcome traditional models and establish new industrial paradigms. This ETF is structured to include companies working on technologies such as artificial intelligence and robotics, thus positioning itself as a vehicle for investors seeking exposure to highly innovative sectors.
2. Genomes: In parallel, the ARK Genomic Revolution UCITS ETF (ARKG) focuses on the genomics sector, an area that has shown revolutionary potential in terms of the development of new therapeutics and medical treatments. The companies in which ARKG invests are involved in activities ranging from DNA sequencing to advanced biotechnology, driving the advancement of personalized medicine and significantly improving available treatment options.
3. Artificial Intelligence: The third fund, the ARK Artificial Intelligence & Robotics UCITS ETF (ARKI), is dedicated to investments in the field of artificial intelligence and robotics. This sector, which spans from advanced automation to machine learning, is among the most dynamic and potentially transformative. ARKI aims to identify and support companies that are at the forefront of innovation in these technologies, thus offering European investors a gateway to an area considered strategic for the future of technological and industrial progress.
With a Total Expense Ratio (TER) of 0.75% for each of the ETFs, ARK Invest aims to balance the cost of active management with the need to offer an adequate return to investors. This cost structure reflects a trade-off between access to sophisticated investment strategies and the sustainability of long-term investments in the European context, which is increasingly inclined towards innovative and thematic financial products.
Cost Considerations: balance between active management and investment sustainability
With a Total Expense Ratio (TER) of 0.75% for each of the ETFs, ARK Invest aims to balance the cost of active management with the need to offer an adequate return to investors. This cost structure reflects a trade-off between access to sophisticated investment strategies and the sustainability of long-term investments in the European context, which is increasingly inclined towards innovative and thematic financial products.
Analysis of the Innovative ETF Market: leaders and competitors
When examining the broader market for innovative ETFs, it is essential to recognize standout products and their direct competitors.
1. For example, the CSIF (IE) MSCI USA Tech 125 ESG Universal Blue UCITS ETF B USD is a benchmark in the technology segment. With a relatively low TER of 0.18%, this ETF physically tracks the MSCI USA Tech 125 ESG Universal index, which includes mid- and large-cap American companies developing innovative technologies. The added ESG filter attracts investors who are aware of the social and environmental implications of their investments.
2. In parallel, the Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C stands out in the artificial intelligence sector. With significant assets under management and a TER of 0.35%, this fund tracks the Nasdaq Global Artificial Intelligence and Big Data Index, offering comprehensive coverage of the companies driving the advance in these crucial sectors.
These examples illustrate how ARK Invest is positioning its new European ETFs in a competitive market, leveraging its reputation for innovation to attract capital in a dynamic and rapidly evolving environment. The growth prospects for innovative and thematic ETFs look promising, given the growing emphasis on advanced technologies and social responsibility in investment decisions.
| Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them, since only he knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to public savings. |
Original article published on Money.it Italy 2024-06-06 17:29:00. Original title: Nuove emissioni di ETF rivoluzionano il settore dell’Intelligenza Artificiale
