L&G Artificial Intelligence

ETF description

This ETF invests in companies that are involved in the development and application of artificial intelligence (AI) technologies. It aims to capture the growth potential of businesses that are at the forefront of innovations in AI, such as those creating AI‑powered products, services, and systems. The fund includes companies from a range of industries that either build the technology behind AI or use AI to enhance their operations.

This ETF may appeal to investors who are interested in technological innovation and the future impact of AI.

Issuer details

Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a subsidiary of Legal & General Group plc. With over £1.5 trillion in assets under management as of June 2024. Established in 1836, LGIM has a long history and is known for its strong focus on index investing, providing investors with cost‑effective and diversified exposure to various markets. LGIM is also recognized for its innovative ESG integration across its investment strategies and expertise in liability‑driven investment (LDI) solutions. Notable ETFs include the L&G Global Technology Leaders UCITS ETF and the L&G Cyber Security UCITS ETF, reflecting LGIM’s commitment to providing access to innovative and thematic investment themes. LGIM offers a range of investment solutions and covers various market segments.

Index details

The Index aims to track the performance of a basket of companies that have a distinct portion of their business and revenue derived from the field of Artificial Intelligence, and the potential to grow within this space through innovation and/or market adoption of their products and/or services.

The index is comprised of companies which are publicly traded on various stock exchanges around the world that are exposed to the ‘“Artificial Intelligence”’ theme as defined by ROBO Global. ROBO Global created and maintains a unique database of companies across the globe that have a portion of their business and revenue associated with Artificial Intelligence and enabling technologies. The ROBO Global® Industry Classification currently identifies 11 subsectors of the Artificial Intelligence theme that present a suitable level of product and technology maturity to carry high growth and returns potential.

A company is only eligible for inclusion in the Index if it is of a sufficient size (determined by reference to the total market value of its shares) and it is sufficiently ‘“liquid”’ (a measure of how actively its shares are traded on a daily basis). Within the Index, companies are weighted according a modified AI‑factor weighting scheme. The Index is rebalanced quarterly in March, June, September and December.