There’s a case to be made that of all the factors floating around the U.S. stock market this year, A.I. has played the most important role. At the start of the year, media headlines swirled around a potentially damaging earnings season for megacap tech names. AI, however, rode to the rescue and has helped lift many of those market leaders. With that growth has come big interest in the ETF space, with KraneShares the latest firm adding an AI ETF.
See more: KraneShares Rolls Out Downside Hedged Equity Fund
KraneShares has launched the new KraneShares Artificial Intelligence & Technology ETF (AGIX ). Launched on the Nasdaq Stock Market (NASDAQ) on Thursday, the ETF tracks the Solactive Etna Artificial General Intelligence Index. The AI, through its index, aims to capture the performance of firms both developing and utilizing AI tech. It also has the ability to invest in private AI firms, too.
“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," said Brendan Ahern, CIO of KraneShares.
“With the potential to add trillions in annual value across various sectors, generative AI is poised to be a transformative force in the global economy, and AGIX offers investors a way to participate in this technological revolution,” he added.
AI ETF AGIX Arrives on the Scene
The AI ETF’s index considers three sectors in AI: hardware, infrastructure, and applications. The strategy applies an “AI Exposure Score” that aims to measure a firm’s overall relevance to an AI theme. By investing in the chain from semiconductor manufacturers all the way up to businesses using large language models (LLMs), AGIX looks to set itself apart.
While AI is a popular area already, AGIX could set itself apart with that comprehensive view. What’s more, potential rate cuts could rev up the AI space once again and help the case for the AI ETF on its debut.
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