WisdomTree launches artificial intelligence ETF

WisdomTree has expanded its thematic range with the launch of an artificial intelligence exchange-traded fund, in partnership with Nasdaq and the Consumer Technology Association (CTA).

The WisdomTree Artificial Intelligence UCITS ETF listed on the London Stock Exchange today (5 December) with a total expense ratio (TER) of 0.40%.

Tracking the Nasdaq CTA Artificial Intelligence index, the ETF provides investors with exposure to companies that will benefit from the growth in AI adoption.

Comprising 52 securities, the index identifies companies that are enhancers, enablers or engagers in the area of artificial intelligence.

Engagers make up 50% of the index exposure and are defined as companies that focus on providing AI-powered products and services.

Enablers total 40% of the index and are companies whose core products and services enable AI, including component manufacturers and platform provider that power the running of AI processes.

Enhancers make up the final 10% of the index and are businesses who are involved in AI, but the product is not a core part of the firm’s revenue.

Only companies with the top 15 scores in each of the three categories are selected for inclusion and are weighted evenly.

Christopher Gannatti, head of research in Europe at WisdomTree, commented: “When investors think of what this can bring to a portfolio, they should be thinking over a long time horizon and about how advances like autonomously driven cars, a digital workforce, mass facial recognition and other applications of intelligent machines could change the world.”

Rafi Aviav, head of product development in Europe at WisdomTree, added: “AI is a revolutionary technology and the market for AI products and services is expected to more than triple over the next three years.”

The firm has launched a number of ETFs this year following the completion of the $611m ETF Securities acquistion, including a CoCo bonds strategy, an S&P 500 put options ETF and two smart-beta ETFs.