Global X brings the world’s biggest Artificial Intelligence ETF to Australia

Global X brings the world’s biggest Artificial Intelligence ETF to Australia

Global X ETFs is launching the Global X Artificial Intelligence ETF (ASX: GXAI) on the ASX, offering Australians targeted exposure to innovation and growth in artificial intelligence (AI) related companies.

GXAI, which tracks the Indxx Artificial Intelligence & Big Data Index, focuses specifically on investing in companies along the AI value chain, including those involved in generative AI technology providing automation of systems and AI-as-a-Service solutions. GXAI will be the first dedicated Artificial Intelligence ETF launched in Australia.

Global X ETFs Chief Executive, Evan Metcalf said there is almost limitless potential with the AI thematic and forecasts suggest the global AI market could increase to US$300 billion by 2026.

“Artificial intelligence is still maturing, and with this natural evolution comes the potential opportunities for new applications. GXAI offers investors a way to target the rapid advancements and capabilities of AI technologies across a range of industries and a diversified selection of companies. We believe there is a big appetite for AI-related ETFs in the local market, as Global X has already seen a combined $125 million in flows this year to date across the Global X FANG+ ETF (ASX: FANG) and the Global X Semiconductor ETF (ASX: SEMI) which offer exposure to subsets of the AI theme,” Metcalf said.

“AI is not a flash in the pan, it’s a structural shift which will change industries and life as we know it. Australian investors can use GXAI to invest in leading companies across the value chain of this megatrend which are positioned to benefit from AI adoption and innovation. Hence, GXAI is a fitting addition to our product lineup as our thematic investing ethos is centred on longer-term opportunities,” Metcalf said.

Speaking to the strategic targeted benefits of GXAI, Scott Helfstein, Head of Thematic Solutions at Global X, said, “While GXAI captures some of the most prominent names in the AI sector, such as Netflix, Adobe and Nvidia, it applies moderation through a single-stock cap exposure of 3%. This acts as a natural portfolio diversifier and presents a more balanced portfolio which thoughtfully targets the AI theme.”

“In the past 12 months, we’ve seen an increased global appetite to capitalise on the growth potential of AI technologies, and we expect this momentum to continue. It is important for investors to have strong, well tested investment vehicles at their disposal to capitalise on this important thematic.”

GXAI is the latest addition to Global X’s 36-strong product lineup in Australia. It expands Global X’s robust suite of technology-themed ETFs including BUGG, FANG, N100, ROBO, SEMI, and TECH.