First Trust Launches First Trust Bloomberg Artificial Intelligence ETF
First Trust has launched the First Trust Bloomberg Artificial Intelligence ETF (NYSE Arca: FAI), tracking the Bloomberg Artificial Intelligence Index. The ETF provides exposure to 50 top companies in the AI ecosystem, selected based on market capitalization and revenue assessment. Companies are evaluated on their near-term AI revenue exposure, positioning, and execution capability in areas like deep learning, machine learning, and natural language processing. The fund aims to balance focused selectivity with diversification in the growing AI sector.
First Trust ha lanciato il First Trust Bloomberg Artificial Intelligence ETF (NYSE Arca: FAI), che traccia il Bloomberg Artificial Intelligence Index. L'ETF fornisce esposizione a 50 delle migliori aziende nell'ecosistema dell'IA, selezionate in base alla capitalizzazione di mercato e alla valutazione dei ricavi. Le aziende sono valutate in base all'esposizione ai ricavi dell'IA nel breve termine, al posizionamento e alla capacità di esecuzione in aree come il deep learning, il machine learning e l'elaborazione del linguaggio naturale. Il fondo mira a bilanciare selettività mirata con diversificazione nel crescente settore dell'IA.
First Trust ha lanzado el First Trust Bloomberg Artificial Intelligence ETF (NYSE Arca: FAI), que sigue el Bloomberg Artificial Intelligence Index. El ETF ofrece exposición a 50 de las principales empresas en el ecosistema de IA, seleccionadas en función de la capitalización de mercado y la evaluación de ingresos. Las empresas se evalúan según su exposición a los ingresos por IA a corto plazo, posicionamiento y capacidad de ejecución en áreas como aprendizaje profundo, aprendizaje automático y procesamiento del lenguaje natural. El fondo busca equilibrar la selectividad enfocada con la diversificación en el creciente sector de IA.
퍼스트 트러스트는 퍼스트 트러스트 블룸버그 인공지능 ETF (NYSE Arca: FAI)를 출시하였으며, 블룸버그 인공지능 지수를 추적합니다. 이 ETF는 시장 가치와 수익 평가를 기반으로 선택된 인공지능 생태계의 50개 주요 기업에 대한 노출을 제공합니다. 기업들은 단기 인공지능 수익 노출, 포지셔닝, 그리고 딥 러닝, 기계 학습, 자연어 처리 등 분야에서의 실행 능력에 따라 평가됩니다. 이 펀드는 성장하는 인공지능 분야에서 집중적인 선택성과 다양성을 균형 있게 조화하려고 합니다.
First Trust a lancé le First Trust Bloomberg Artificial Intelligence ETF (NYSE Arca: FAI), qui suit le Bloomberg Artificial Intelligence Index. L'ETF offre une exposition à 50 des meilleures entreprises de l'écosystème de l'IA, sélectionnées en fonction de leur capitalisation boursière et de l'évaluation de leurs revenus. Les entreprises sont évaluées sur leur exposition imminente aux revenus de l'IA, leur positionnement et leur capacité d'exécution dans des domaines tels que le deep learning, le machine learning et le traitement du langage naturel. Le fonds vise à équilibrer une sélectivité ciblée avec une diversification dans le secteur de l'IA en pleine expansion.
First Trust hat den First Trust Bloomberg Artificial Intelligence ETF (NYSE Arca: FAI) gestartet, der den Bloomberg Artificial Intelligence Index verfolgt. Der ETF bietet Zugang zu 50 der besten Unternehmen im KI-Ökosystem, die auf der Basis von Marktkapitalisierung und Umsatzbewertung ausgewählt wurden. Die Unternehmen werden hinsichtlich ihrer kurzfristeigen KI-Umsatzexposition, Positionierung und Umsetzungsfähigkeit in Bereichen wie Deep Learning, Machine Learning und natürliche Sprachverarbeitung bewertet. Der Fonds zielt darauf ab, fokussierte Selektivität mit Diversifikation im wachsenden KI-Sektor zu verbinden.
- Launch of new AI-focused ETF providing targeted exposure to 50 leading companies in the AI sector
- Partnership with Bloomberg for index creation and company assessment
- First Trust has significant assets under management of approximately $245 billion as of October 31, 2024
- AI companies face risks of high volatility and resources
- Potential increased regulatory scrutiny for AI technology
- Fund faces concentration risk in the technology sector
Insights
The launch of FAI marks a significant entry into the competitive AI-themed ETF space, targeting 50 carefully selected companies based on AI revenue exposure and market positioning. The fund's partnership with Bloomberg for index construction adds credibility through their rigorous selection methodology combining market cap and revenue assessment.
The timing is strategic, capitalizing on growing investor interest in AI exposure while offering a balanced approach between concentration and diversification. With First Trust's substantial
Key differentiators include the focus on near-term revenue exposure rather than just general AI involvement, potentially offering more direct AI market exposure compared to broader tech ETFs. However, investors should note the concentrated nature of a 50-stock portfolio and associated volatility risks in this emerging sector.
An index-tracking thematic ETF that provides exposure to companies within the artificial intelligence ecosystem
“We’re proud to work closely with the team at First Trust as they continue to grow their ETF product suite. With the Bloomberg Artificial Intelligence Index, we’ve created an equity benchmark of the top 50 companies in this space chosen through a combination of market capitalization and revenue assessment by Bloomberg Intelligence research” said Allison Stone, Head of Multi-Asset Product, Bloomberg Index Services Limited.
Artificial intelligence (“AI”) is rapidly advancing and increasingly embedding itself into various aspects of daily life, from personalized recommendations to autonomous vehicles. The evolving impact of AI in healthcare, finance, manufacturing, and entertainment is reshaping how we live our lives on a global scale. FAI provides exposure to the performance of companies that develop or facilitate solutions such as deep learning, machine learning, natural language processing and image and speech recognition. Companies are assessed by their near-term revenue exposure to AI, and positioning and ability to execute within the AI competitive landscape.
“While AI is still in its early innings, its potential to dramatically boost productivity and efficiency across numerous applications is undeniable. While it’s challenging to pinpoint the exact winners and losers at this early juncture, FAI aims to strike a balance between focused selectivity and diversification by investing in 50 stocks within the burgeoning AI ecosystem,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust.
For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
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Artificial intelligence companies tend to be more volatile and they may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress, costs of research and development, and government regulation. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights could have a material adverse effect on such companies. Additionally, artificial intelligence technology could face increased regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize artificial intelligence.
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Ryan Issakainen
First Trust
(630) 765-8689
RIssakainen@FTAdvisors.com
Source: First Trust Advisors L.P.
FAQ
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