Innovator Capital Management announced it will launch a new ETF based on Loup Ventures’ indexing methodology to help investors access the next frontier in technological developments.
On July 25, Innovator Capital Management will roll out the Innovator Loup Frontier Tech ETF (NYSEArca: LOUP).
“The Loup Frontier Tech Index tracks all of the key drivers of disruptive technology identified and chosen by an award winning technology research team,” Bruce Bond, Chief Executive Officer of Innovator Capital Management, said in a note.
The Loup Frontier Tech Index follows a smart beta indexing methodology designed to track the performance of companies that are influencing the future of technology in areas including artificial intelligence, computer perception, robotics, autonomous vehicles, virtual/mixed/augmented reality, and other similarly disruptive innovations.
“While some indexes track a particular industry vertical like robotics or artificial intelligence, the Loup Frontier Tech Index seeks to track a broader domain of frontier technologies, which encompass a wide range of innovations that will collectively lead the next major technological revolution,” Gene Munster, Managing Partner at Loup Ventures, said in a note.
A Look at Disruptive Technologies
The Loup Frontier Tech indexing methodology is based on technological advancements that are most likely to disrupt consumer and enterprise businesses over the next several decades.
For instance, the A.I. component is comprised of companies that provide software services to automate industrial, knowledge work, and consumer processes. These services may directly automate specific processes or provide semi-automated tools as an intermediate step to full automation.
Computer perception covers companies that provide hardware and software related to enabling vision, which could include sensors, laser arrays, semiconductors, etc.
Robotics includes those companies that provide physical robots and related products and services for industrial, collaborative, agricultural, medical, and/or consumer-related automation.
Autonomous vehicles manufacturers provide hardware and/or software used in the development of self-driving cars, unmanned aerial vehicles (drones), or other autonomous vehicles that operate on the ground, in the air, or in the sea.
Lastly, the virtual/mixed/augmented reality component includes companies involved in creating hardware and/or software for delivering immersive virtual reality experiences or for delivering experiences that enhance with real world with digital overlay.
The next major shift in the way technology affects the way we interact in the world and is likely to take the form of multiple new technologies combining to build on the three previous revolutions. The Loup Frontier Tech indexing methodology focuses on technologies deemed most likely to form the next wave of disruption.
“The Loup Frontier Tech Index spans across fast-growing frontier technology themes yielding exposure to highly disruptive companies that are under-represented or overlooked in most traditional technology indexes,” Bond added.
For more information on new fund products, visit our new ETFs category.