Artificial intelligence optimism drove strong gains for a number of companies in the current earnings season. Funds like the KraneShares Artificial Intelligence & Technology ETF (AGIX) capture the opportunities across the AI value chain and benefit from strong investor enthusiasm.
Tech stocks soared in trading Wednesday, with stocks like Meta, Apple, and Amazon trading at new 52-week highs, reported CNBC. Ongoing earnings beats by tech and chip makers carried technology stocks higher, with the Nasdaq Composite and S&P 500 hitting new record highs.
A central theme yet again this earnings season is that of artificial intelligence and optimism around growing adoption. AGIX offers exposure to global AI companies and invests across a range of artificial intelligence industries, including infrastructure, hardware, and applications. The fund, launched in July, is up over 20% YTD.
AGIX offers high-conviction, concentrated exposure to AI companies. The fund tracks the Solactive Etna Artificial General Intelligence Index that holds both public and private AI companies. The strategy harnesses broad opportunity when looking across the AI ecosystem beyond the Magnificent Seven. This includes semiconductors, data centers, cloud companies, edge AI, large language models, and AI applications.
AGIX invests in three fundamental pillars of the AI ecosystem: infrastructure, hardware, and applications. The index begins with a starting universe of approximately 3,000 companies and filters for characteristics such as liquidity and market cap. It then screens for companies that fall within 12 AI-related industries.
Each security then receives an AI exposure score, a proprietary formula that considers “AI readiness” as well as “AI relevance.” The highest-scoring companies make it into the Index, and are further weighted by their AI exposure score as well as by market cap.
No single pillar makes up more than 40% of the total weight of the underlying index. The strategy is a high-conviction one, with between 40–50 securities at any given time. It also rebalances on a quarterly basis to keep current with artificial intelligence trends.
AGIX carries an expense ratio of 1.00%.
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