Today, STOXX Ltd., the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, introduced a new index that uses AI-related algorithms to select companies exposed to the artificial intelligence (AI) megatrend at the Inside ETFs conference in the U.S. The new index will be available tomorrow, Jan. 23, 2018.
“The new STOXX AI index is a transparent, rules-based and progressive approach that tracks artificial intelligence using artificial intelligence technology. It is a digital disruption in AI investment itself,” said Matteo Andreetto, Chief Executive Officer at STOXX.
STOXX® AI Global Artificial Intelligence Index comprises around 200 companies from a wide range of industries that invest heavily in the development of new AI technologies such as technology, telecommunications, finance, and internet services. These companies are considered ‘digital pioneers’ that are well-positioned to benefit from the increased adoption of AI technologies, among them Apple, Deutsche Telekom, Bank of America and Facebook.
The new STOXX AI index selects its constituents by using artificial intelligence technology, and it is the first thematic index to do so. For the selection of the index constituents, STOXX has partnered with Yewno, an award-winning AI company based in Silicon Valley, which applied its knowledge graph technology to assess companies’ intellectual property (IP).
Ruggero Gramatica, CEO of Yewno Inc., said his company was proud to partner with STOXX for the launch of the AI Index.
He explained that the core intelligent framework behind Yewno’s technology, “leverages advanced techniques typically applied within the fields of complex systems, computational linguistics and AI, and provides a unique platform to readily generate intelligent signals such as data packages, indices, and advanced analytics.”
The key criterion used in the selection process is the identification of patent filings related to AI, which can indicate leading AI innovators as well as AI adopters. The underlying universe for the index composition is the STOXX Global and Developed Markets Total Market Index, which tracks around 7,000 stocks.
When talking about the unrivaled investment opportunity present in AI technology, Andreetto said, “investors need solutions to discern hype from a real opportunity. With our two new transparent, rules-based AI indices for AI-focused investors we offer them choice: on the one hand, a classical, revenue-based approach; on the other hand, a progressive, AI IP-based approach, where an AI algorithm is used in the selection of companies.”
In addition to the innovative AI index based on AI, STOXX also launched the STOXX® Global Artificial Intelligence Index today, which includes companies with a revenue exposure above 50% to AI-related sectors.
For more information on the ETF industry, visit our current affairs category.