On Monday, ROBO Global launched the ROBO Global Artificial Intelligence ETF (THNQ). It invests in companies around the world that are leading the AI revolution.
Included in THNQ are companies developing the technology and infrastructure enabling AI, such as computing, data and cloud services, as well as companies that apply AI in various verticals, from business processes to e-commerce and healthcare, among others. THNQ provides exposure to new market opportunities and potential revenue growth created by the expansive development and application of Artificial Intelligence.
Additionally, THNQ seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ROBO Global® Artificial Intelligence Index. The ROBO Global Artificial Intelligence Index was created on August 21, 2018, and is designed to measure the performance of Artificial Intelligence Companies.
Artificial Intelligence Companies eligible for inclusion in the Index will derive a distinct portion of their business and revenue the Artificial Intelligence field. Eligible Index components are companies that are exchange listed, have a market capitalization exceeding $200 million at the time of inclusion on the Index, and a minimum trailing 3-month average daily volume of USD $1,000,000 at the time of inclusion. Existing Index components must maintain a market capitalization of at least $100 million. Index components that meet the foregoing eligibility requirements are selected from a proprietary database of Artificial Intelligence Companies (“AI Database”) that are organized into two general categories: infrastructure and applications and services.
The Index consists of securities of both U.S. and foreign issuers, including securities of issuers located in emerging market countries. The Index Provider expects, under normal circumstances, at least 25% of the Index components to represent securities of non-U.S. issuers, including China A-shares, which are shares of mainland China-based companies that trade on the Chinese stock exchanges.
Index constituents are weighted according to their THNQ Score. Such weighting is calculated by dividing a company’s THNQ score by the sum of all available THNQ Scores in the AI Database (except that China A-Shares’ weightings are subject to reduction if their weight exceeds a certain number and such excess is redistributed pro-rata across the remaining constituents). The Index is rebalanced and additions are made quarterly.
Daily index values can be viewed on Bloomberg and Reuters. More information about the Index
may be reviewed at www.roboglobal.com.
This article originally appeared on ETFTrends.com.