Global X Artificial Intelligence & Technology ETF (AIQ) Surpasses USD 1 Billion in Assets

Rhea-AI Summary

Global X ETFs' AIQ surpasses USD 1 billion in assets under management, reflecting the rapid rise of AI and its impact on industries. The AIQ ETF invests in companies benefiting from AI technology, which saw major strides in 2023. This includes OpenAI's ChatGPT platform and over $50 billion in AI chip expenditures. AIQ provides exposure to businesses at the forefront of these technologies.

Insights

Market Research Analyst

The surpassing of USD 1 billion in assets under management (AUM) by the Global X Artificial Intelligence & Technology ETF (AIQ) is a significant indicator of investor confidence in the AI sector. This achievement signals an increasing recognition of AI's transformative impact on various industries and the potential for substantial economic growth. The ETF's focus on companies that integrate AI into their products and services aligns with the current trend of digital transformation and the integration of AI across business operations.

From a market research perspective, the strong performance of AIQ reflects broader market trends where investment in AI technologies is seen as a strategic move to capitalize on the 'fourth industrial revolution.' The ETF's growth is consistent with the expanding AI market, which has been fueled by advancements in technology and increased adoption in sectors such as healthcare, finance and manufacturing. The rise in worldwide expenditures on AI chips further corroborates the growing demand for AI hardware, essential for the development and deployment of AI applications.

Investors should note the potential for volatility in this sector, as it is highly dependent on technological advancements and regulatory environments. However, the current trajectory suggests a positive outlook for AI investments, with AI's contribution to the global economy expected to be in the trillions of dollars.

Financial Analyst

Reaching the USD 1 billion AUM milestone is a substantial financial achievement for the Global X Artificial Intelligence & Technology ETF, reflecting a strong investor appetite for thematic funds that target high-growth areas like AI. The performance of AIQ can be attributed to the significant strides in AI technology, such as the widespread adoption of platforms like ChatGPT. The ETF's success is also indicative of the broader market's valuation of AI as a key driver for future growth.

From a financial analysis standpoint, the ETF's composition and performance should be scrutinized alongside the underlying assets' fundamentals and the AI sector's growth trajectory. Investors should consider the diversification benefits of AIQ, which provides exposure to a range of businesses, potentially mitigating sector-specific risks. However, it's important to assess the risks associated with thematic ETFs, including sector concentration risk and the impact of market cycles on technology investments.

Given the rapid evolution of AI technologies and their adoption across industries, the long-term growth prospects for AIQ appear favorable. Nonetheless, investors should be aware of the potential for short-term fluctuations due to market sentiment and technological disruptions.

Technology Analyst

The Global X Artificial Intelligence & Technology ETF's milestone is a testament to the pervasive role AI is playing in the technology sector. AI's impact on cloud computing, IT infrastructure and the development of scalable solutions is profound, with AI acting as a catalyst for innovation and efficiency. The ETF's focus on AI technology and hardware companies is strategic, as these are the sectors where AI's influence is most pronounced.

As a technology analyst, it is crucial to highlight the importance of AI as a competitive differentiator for companies within the ETF's portfolio. The rapid user growth of AI platforms like ChatGPT demonstrates the scalability and potential of AI applications. The surge in AI chip expenditures underscores the critical need for advanced hardware to support AI algorithms, which can drive future growth for companies within the ETF.

Investors should monitor the continuous advancements in AI and the emergence of new use cases, which could further drive the ETF's growth. However, they should also be aware of the challenges, including ethical considerations and the need for robust data privacy and security measures, which could impact the sector's growth trajectory.

NEW YORK, Jan. 30, 2024 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds, today announced that the Global X Artificial Intelligence & Technology ETF (AIQ) has surpassed USD 1 billion in assets under management (AUM). This important milestone represents both the firm's legacy and expertise in thematic investing as well as the rapid rise of artificial intelligence (AI) and its role in accelerating disruption across industries.

AIQ, which seeks to invest in companies that potentially stand to benefit from the further development and utilization of AI technology and hardware in their products and services, has benefitted from the major strides made in cutting-edge AI technology in 2023. ChatGPT, OpenAI's generative AI platform, surpassed over 100 million weekly users in under a yearⁱ, and worldwide expenditures on AI chips soared past $50 billionⁱⁱ last year as new consumer and enterprise AI use cases continue to emerge. AIQ provides investors with exposure to a range of businesses engaging these paradigm-shifting technologies.

"AI's rapid advancement has the potential to add trillions of dollars to the global economyⁱⁱⁱ. AI is fueling the evolution of cloud computing and producing more convenient, accessible and scalable resources that benefit corporate IT departments and consumers alike. In addition, AI is helping to bring about the next generation of automation technologies – lowering costs, driving productivity and helping employees focus on higher value work," said Pedro Palandrani, Director of Research at Global X ETFs. "As these technologies continue to overlap, we believe they are paving the way for successive rounds of innovation that can continue to change consumer expectations in new and often unexpected ways. AIQ provides investors with access to this disruptive theme, while leveraging Global X's history in and knowledge of thematic investing."

The Global X Artificial Intelligence & Technology ETF (AIQ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence & Big Data Index. The fund carries a total expense ratio of 0.68%.

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and over $40 billion in worldwide assets under management.^iv While we are widely recognized for our Thematic Growth, Income, Commodity and International Access ETFs, we also offer Core, Risk Management, Digital Asset, and other solutions to suit a range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $550 billion in assets under management worldwide.^v Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $80bn in assets under management.^vi

Important Information

Investing involves risk, including the possible loss of principal. The investable universe of companies in which AIQ may invest may be limited. The companies in which the Fund invests may be subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation.

International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. AIQ is non-diversified.

As of January 29, 2024, AIQ is not invested in shares of OpenAI. Holdings are subject to change. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Carefully consider the fund's investment objectives, risks, and charges and expenses. This and other information can be found in the fund's full or summary prospectuses, which may be obtained at globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments.

i Source: The Verge, November 6, 2023
ii Source: Gartner, August 22, 2023
iii Source: McKinsey Report: The Economic Potential of AI, June 14, 2023
iv Source: Global X, as of January 28, 2024
v Mirae Asset, as of November 20, 2023
vi Mirae Asset, as of November 20, 2023

Media Contact

Naomi Sussis
AVP, Communications Manager
nsussis@globalxetfs.com

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SOURCE Global X Management Company LLC

FAQ

What is the significance of AIQ surpassing USD 1 billion in assets under management?

AIQ surpassing USD 1 billion in assets under management reflects the growing interest and investment in AI technology and its impact on industries.

What companies does AIQ invest in?

AIQ invests in companies that stand to benefit from the further development and utilization of AI technology and hardware in their products and services.

What were some major advancements in AI technology in 2023?

In 2023, OpenAI's ChatGPT platform surpassed over 100 million weekly users, and worldwide expenditures on AI chips soared past $50 billion.

How does AIQ provide exposure to AI technologies?

AIQ provides investors with exposure to a range of businesses engaging in paradigm-shifting AI technologies.

What is the potential impact of AI on the global economy?

AI's rapid advancement has the potential to add trillions of dollars to the global economy, fueling the evolution of cloud computing and producing more convenient, accessible, and scalable resources for corporate IT departments and consumers.