- KraneShares has introduced the KraneShares Artificial Intelligence & Technology ETF (AGIX) on Nasdaq.
- AGIX tracks the Solactive Etna Artificial General Intelligence Index.
- The ETF targets companies involved in AI development and application, including hardware, infrastructure, and applications.
- The Index includes both publicly listed and private AI firms.
- The selection process uses an AI Exposure Score to assess company relevance and readiness.
- Key sectors covered include semiconductors, data centers, cloud services, and businesses leveraging AI for efficiency and customer experience.
- Brendan Ahern of KraneShares highlights AGIX’s potential to capture the AI value chain and the broader economic impact of generative AI.
- Derek Yan of KraneShares notes AI’s transformative potential and high investor interest driven by advancements like ChatGPT.
Main AI News:
Krane Funds Advisors, LLC (KraneShares), a prominent asset management firm specializing in global exchange-traded funds (ETFs), has announced the introduction of the KraneShares Artificial Intelligence & Technology ETF on the Nasdaq Stock Market. This new ETF aims to offer investors targeted exposure to the burgeoning artificial intelligence (AI) sector by tracking the Solactive Etna Artificial General Intelligence Index.
The AGIX ETF is designed to reflect the performance of companies that are significantly involved in the development and application of AI technologies. It primarily invests in publicly listed global AI companies, with the option to allocate capital to private AI enterprises as well. The underlying index focuses on three critical areas within the AI ecosystem: hardware, infrastructure, and applications.
The selection of companies for the Index is based on a proprietary AI Exposure Score. This metric evaluates each company’s relevance to and preparedness for AI technology. The Index includes firms engaged in producing semiconductors and data centers essential for large language models (LLMs), as well as those providing cloud and data services vital for AI training and deployment. It also encompasses businesses that utilize AI to boost operational efficiency, cut costs, and enhance customer experiences, offering a comprehensive view of the AI value chain.
Brendan Ahern, Chief Investment Officer of KraneShares, emphasized the strategic value of AGIX, stating, “AGIX seeks to provide strategic access to the future of artificial intelligence, capturing the full spectrum of the AI value chain from hardware to infrastructure to applications. With generative AI poised to add trillions in annual value across various sectors, AGIX presents investors with a pathway to participate in this technological revolution.”
KraneShares Senior Investment Strategist Derek Yan, CFA, noted the transformative potential of AI technologies, referencing the rapid adoption of generative AI applications like ChatGPT. Yan highlighted McKinsey & Company’s projection that generative AI could automate up to 50% of work activities between 2030 and 2060. “AGIX aims to track the companies at the forefront of this transformative technology,” Yan added.
Conclusion:
The launch of KraneShares’ AGIX ETF represents a significant step in providing investors with specialized exposure to the expanding AI sector. By tracking a diverse array of companies across key areas of the AI value chain, AGIX aims to capture both the foundational technology and practical applications of AI. This move aligns with the growing market enthusiasm for AI innovations, particularly generative AI, which is expected to drive substantial economic growth in the coming years. For investors, AGIX offers a strategic opportunity to participate in the AI revolution, potentially benefiting from the sector’s rapid development and transformative impact on various industries.
