Xtrackers by DWS Launches Artificial Intelligence and Big Data ETF XAIX
New thematic fund utilizes Nasdaq’s systematic patent screening process to identify promising AI innovators and disruptive technology companies of the future
NEW YORK, NY – August 5, 2024 – DWS, a leading global asset manager, announced the launch of the Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX). This fund aims to provide investors with targeted exposure to companies actively positioning themselves to be the producers of Artificial Intelligence (AI) innovation and Big Data technologies of the future.
"By launching XAIX in the U.S., we aim to offer investors broad access to the AI and Big Data technology producers powering the market today, and the ones that are poised to fuel the next stages of market growth beyond the AI-mega-caps,” said Olivier Souliac, Head of Indexing for Xtrackers products at DWS Group.
The Nasdaq Global Artificial Intelligence and Big Data™ Index is designed to track the performance of companies that are most active in filing patents related to Deep Learning, Natural Language Processing, Image Recognition, Speech Recognition & Chatbots, Cloud Computing, Cybersecurity, and Big Data. In collaboration with DWS, Nasdaq has created the Index classification process to review innovative technologies by systematically analyzing millions of approved patents on a rolling one-year basis. The Index aims to select companies that may be innovative in their space based on the data.
“We’re excited to add the Artificial Intelligence theme to our powerful line-up of thematic ETFs in the U.S. market by partnering with Nasdaq,” said Arne Noack, Regional Investment Head Xtrackers, Americas. “We believe that their strategy and track record of utilizing a proprietary patent screening process, aimed at identifying innovative companies of the future, makes XAIX a unique and highly competitive proposition in the market for U.S.-listed ETFs focused on the Artificial Intelligence theme.”
The new fund complements the Xtrackers Thematic fund universe that currently spans U.S. Critical Technology, U.S. Green Infrastructure, Semiconductors, Cybersecurity, and Natural Resources.
Noack added: “With this fund, DWS is providing investors with exposure to AI producers and innovators, instead of the broad universe of AI beneficiaries. Many companies are starting to highlight the application of AI in their business models, however very few are AI innovators. The unique selection process of this index allows DWS and Nasdaq to identify who is truly an innovator systematically.”
Amanda Rebello, Head of Xtrackers Sales, U.S. Onshore, said, “The Xtrackers Artificial Intelligence and Big Data ETF can help with risk management by providing a diversified exposure to this theme. By tracking an index that caps individual stocks weights, this may help minimize esoteric, single-stock exposure in a portfolio, thereby decreasing the chance of experiencing an extreme drawdown attributable to just one name’s total return.”
Description of Underlying Indexes and ETF Expense Ratios
The Xtrackers Artificial Intelligence and Big Data ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Nasdaq Global Artificial Intelligence and Big Data Index, developed by Nasdaq Global Indexes and DWS. The Underlying Index is designed to track the performance of a selection of companies from globally developed and emerging markets as defined by Nasdaq. The Index is market capitalization-weighted with a 4.5% cap for each stock at each semi-annual rebalancing.
The ETF is competitively priced with net/gross expense ratio of 0.35%/0.35%.
Xtrackers U.S., Global Product Suite and AuM Update
The addition of XAIX expands the Xtrackers U.S. product suite to 40 funds, and as of June 30, 2024, approximately USD 21 billion in assets under management. Xtrackers globally now comprises over 200 UCITS ETFs as of June 30, 2024, with approximately EUR 291 billion in assets under management.[1]
Since January 2023, Xtrackers by DWS in the U.S. has launched 9 ETFs and has plans to continue to approach the market with innovative, cost-disruptive indexing strategies that give investors building blocks to various types of exposures.