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Xtrackers by DWS Launches Artificial Intelligence and Big Data ETF XAIX

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Xtrackers by DWS has launched the Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX), aiming to provide investors with exposure to companies innovating in AI and Big Data technologies. The ETF tracks the Nasdaq Global Artificial Intelligence and Big Data™ Index, which uses a systematic patent screening process to identify companies active in filing patents related to key technologies like Deep Learning, Natural Language Processing, and Cloud Computing.

The fund is designed to offer a diversified exposure to AI producers and innovators, rather than just AI beneficiaries. With a net/gross expense ratio of 0.35%, XAIX joins DWS's lineup of thematic ETFs. This launch expands the Xtrackers U.S. product suite to 40 funds, with approximately USD 21 billion in assets under management as of June 30, 2024.

Xtrackers di DWS ha lanciato l'Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX), con l'obiettivo di offrire agli investitori esposizione a società che innovano nelle tecnologie dell'Intelligenza Artificiale e dei Big Data. L'ETF segue l'Indice Nasdaq Global Artificial Intelligence and Big Data™, che utilizza un processo di screening sistematico dei brevetti per identificare le aziende attive nella registrazione di brevetti relativi a tecnologie chiave come Deep Learning, Natural Language Processing e Cloud Computing.

Il fondo è progettato per offrire un'esposizione diversificata ai produttori e innovatori di IA, piuttosto che solo ai beneficiari dell'IA. Con un rapporto spese nette/lorde dello 0,35%, XAIX si unisce alla gamma di ETF tematici di DWS. Questo lancio espande la gamma di prodotti Xtrackers negli Stati Uniti a 40 fondi, con circa 21 miliardi di dollari in attivi sotto gestione al 30 giugno 2024.

Xtrackers de DWS ha lanzado el Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX), con el objetivo de proporcionar a los inversores exposición a empresas que innovan en tecnologías de IA y Big Data. El ETF sigue el Índice Nasdaq Global Artificial Intelligence and Big Data™, que utiliza un proceso sistemático de selección de patentes para identificar empresas activas en la presentación de patentes relacionadas con tecnologías clave como Deep Learning, Natural Language Processing y Cloud Computing.

El fondo está diseñado para ofrecer una exposición diversificada a los productores e innovadores de IA, en lugar de solo a los beneficiarios de la IA. Con un ratio de gastos netos/brutos del 0,35%, XAIX se une a la gama de ETFs temáticos de DWS. Este lanzamiento amplía la gama de productos de Xtrackers en EE.UU. a 40 fondos, con aproximadamente 21 mil millones de USD en activos bajo gestión al 30 de junio de 2024.

DWS의 XtrackersXtrackers 인공지능 및 빅데이터 ETF (NASDAQ: XAIX)를 출시하였으며, 이는 투자자에게 인공지능 및 빅데이터 기술을 혁신하는 기업에 대한 노출을 제공하는 것을 목표로 합니다. 이 ETF는 나스닥 글로벌 인공지능 및 빅데이터™ 지수를 추적하며, 이 지수는 체계적인 특허 선별 과정을 사용하여 딥러닝, 자연어 처리 및 클라우드 컴퓨팅과 같은 주요 기술과 관련된 특허를 출원하는 기업을 식별합니다.

이 펀드는 인공지능 수혜자뿐만 아니라 인공지능 생산자와 혁신자에 대한 다양한 노출을 제공하도록 설계되었습니다. 순/총 비용 비율이 0.35%인 XAIX는 DWS의 테마 ETF 라인업에 합류합니다. 이번 출시로 Xtrackers의 미국 제품 라인업은 40개 펀드로 확장되었으며, 2024년 6월 30일 기준으로 약 210억 달러의 자산을 관리하고 있습니다.

Xtrackers de DWS a lancé l'Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX), visant à offrir aux investisseurs une exposition aux entreprises innovant dans les technologies d'intelligence artificielle et de Big Data. L'ETF suit l'Indice Nasdaq Global Artificial Intelligence and Big Data™, qui utilise un processus de sélection systématique de brevets pour identifier les entreprises actives dans le dépôt de brevets liés à des technologies clés telles que le Deep Learning, le Traitement du Langage Naturel et l'Informatique en Nuage.

Le fonds est conçu pour offrir une exposition diversifiée aux producteurs et innovateurs en IA, plutôt qu'uniquement aux bénéficiaires de l'IA. Avec un ratio de dépenses nettes/brutes de 0,35%, XAIX rejoint la gamme d'ETF thématiques de DWS. Ce lancement élargit la gamme de produits Xtrackers aux États-Unis à 40 fonds, avec environ 21 milliards USD d'actifs sous gestion au 30 juin 2024.

Xtrackers von DWS hat den Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX) gestartet, der darauf abzielt, Anlegern Zugang zu Unternehmen zu bieten, die in den Technologien der künstlichen Intelligenz und Big Data innovativ sind. Der ETF verfolgt den Nasdaq Global Artificial Intelligence and Big Data™ Index, der einen systematischen Patentscreening-Prozess verwendet, um Unternehmen zu identifizieren, die aktiv Patente für Schlüsseltechnologien wie Deep Learning, Natural Language Processing und Cloud Computing anmelden.

Der Fonds ist so konzipiert, dass er diversifizierte Exposition gegenüber IA-Produzenten und -Innovatoren bietet, anstatt nur IA-Nutznießern. Mit einem Nettokosten/Bruttokosten-Verhältnis von 0,35% reiht sich XAIX in das Portfolio der thematischen ETFs von DWS ein. Mit diesem Start wird das Produktportfolio von Xtrackers in den USA auf 40 Fonds erweitert, mit einem geschätzten Vermögen von 21 Milliarden USD unter Verwaltung zum 30. Juni 2024.

Positive
  • Launch of a new ETF (XAIX) focused on AI and Big Data innovators
  • Unique patent screening process to identify true AI innovators
  • Diversified exposure with 4.5% cap on individual stock weights
  • Competitive expense ratio of 0.35%
  • Expansion of Xtrackers U.S. product suite to 40 funds
Negative
  • None.

Insights

The launch of Xtrackers Artificial Intelligence and Big Data ETF (XAIX) by DWS is a strategic move in the rapidly growing AI investment space. With a competitive 0.35% expense ratio, XAIX offers investors a unique value proposition by focusing on AI producers and innovators rather than mere beneficiaries. The fund's methodology, utilizing Nasdaq's patent screening process, provides a differentiated approach to identifying potential AI leaders.

From an investor's perspective, XAIX offers diversification benefits through its 4.5% individual stock cap, potentially reducing single-stock risk. This launch expands DWS's thematic ETF lineup, potentially strengthening their market position in the U.S. ETF space. With Xtrackers U.S. managing approximately $21 billion in AUM, this new offering could contribute to further growth, especially given the current AI investment hype.

XAIX's focus on companies filing patents in key AI technologies like Deep Learning, Natural Language Processing and Image Recognition is a forward-thinking approach. This methodology may capture emerging AI leaders before they become household names, potentially offering investors early access to disruptive innovators.

The inclusion of Big Data and Cloud Computing in the fund's scope acknowledges the crucial infrastructure supporting AI development. However, investors should note that patent filings don't always translate to market success. The real challenge lies in commercializing these technologies effectively. XAIX's success will depend on how well its selection process identifies companies that can turn technical innovations into profitable products and services.

The timing of XAIX's launch aligns with surging interest in AI investments. However, it enters a crowded market of AI-focused ETFs. Its success will hinge on how well it differentiates itself from competitors. The patent-based selection process could be a unique selling point, but educating investors about this methodology will be crucial.

DWS's aggressive ETF launch strategy (9 ETFs since January 2023) indicates a push for market share in the U.S. ETF space. This could lead to increased competition and potentially lower fees across the industry, benefiting investors. However, the long-term performance of these thematic ETFs, including XAIX, will be critical in attracting and retaining assets in an increasingly saturated market.

New thematic fund utilizes Nasdaq’s systematic patent screening process to identify promising AI innovators and disruptive technology companies of the future

NEW YORK--(BUSINESS WIRE)-- DWS, a leading global asset manager, announced the launch of the Xtrackers Artificial Intelligence and Big Data ETF (NASDAQ: XAIX). This fund aims to provide investors with targeted exposure to companies actively positioning themselves to be the producers of Artificial Intelligence (AI) innovation and Big Data technologies of the future.

"By launching XAIX in the U.S., we aim to offer investors broad access to the AI and Big Data technology producers powering the market today, and the ones that are poised to fuel the next stages of market growth beyond the AI-mega-caps,” said Olivier Souliac, Head of Indexing for Xtrackers products at DWS Group.

The Nasdaq Global Artificial Intelligence and Big Data™ Index is designed to track the performance of companies that are most active in filing patents related to Deep Learning, Natural Language Processing, Image Recognition, Speech Recognition & Chatbots, Cloud Computing, Cybersecurity, and Big Data. In collaboration with DWS, Nasdaq has created the Index classification process to review innovative technologies by systematically analyzing millions of approved patents on a rolling one-year basis. The Index aims to select companies that may be innovative in their space based on the data.

“We’re excited to add the Artificial Intelligence theme to our powerful line-up of thematic ETFs in the U.S. market by partnering with Nasdaq,” said Arne Noack, Regional Investment Head Xtrackers, Americas. “We believe that their strategy and track record of utilizing a proprietary patent screening process, aimed at identifying innovative companies of the future, makes XAIX a unique and highly competitive proposition in the market for U.S.-listed ETFs focused on the Artificial Intelligence theme.”

The new fund complements the Xtrackers Thematic fund universe that currently spans U.S. Critical Technology, U.S. Green Infrastructure, Semiconductors, Cybersecurity, and Natural Resources.

Noack added: “With this fund, DWS is providing investors with exposure to AI producers and innovators, instead of the broad universe of AI beneficiaries. Many companies are starting to highlight the application of AI in their business models, however very few are AI innovators. The unique selection process of this index allows DWS and Nasdaq to identify who is truly an innovator systematically.”

Amanda Rebello, Head of Xtrackers Sales, U.S. Onshore, said, “The Xtrackers Artificial Intelligence and Big Data ETF can help with risk management by providing a diversified exposure to this theme. By tracking an index that caps individual stocks weights, this may help minimize esoteric, single-stock exposure in a portfolio, thereby decreasing the chance of experiencing an extreme drawdown attributable to just one name’s total return.”

Description of Underlying Indexes and ETF Expense Ratios

The Xtrackers Artificial Intelligence and Big Data ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Nasdaq Global Artificial Intelligence and Big Data Index, developed by Nasdaq Global Indexes and DWS. The Underlying Index is designed to track the performance of a selection of companies from globally developed and emerging markets as defined by Nasdaq. The Index is market capitalization-weighted with a 4.5% cap for each stock at each semi-annual rebalancing.

The ETF is competitively priced with net/gross expense ratio of 0.35%/0.35%.

Xtrackers U.S., Global Product Suite and AuM Update

The addition of XAIX expands the Xtrackers U.S. product suite to 40 funds, and as of June 30, 2024, approximately USD 21 billion in assets under management. Xtrackers globally now comprises over 200 UCITS ETFs as of June 30, 2024, with approximately EUR 291 billion in assets under management.1

Since January 2023, Xtrackers by DWS in the U.S. has launched 9 ETFs and has plans to continue to approach the market with innovative, cost-disruptive indexing strategies that give investors building blocks to various types of exposures.

About DWS Group

DWS Group (DWS) with EUR 933bn of assets under management (as of June 30 2024) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas, and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability, and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.

DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 4,500 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times, to build the best foundation for our clients’ financial future.

IMPORTANT INFORMATION

ETF shares are not individually redeemable and owners of shares may acquire those shares from a Fund or tender such shares for the redemption to the Fund in Creation Units only.

Consider the Fund’s investment objective, risk factors and charges and expenses before investing. This and other important information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-851-4255 or by viewing or downloading a prospectus at www.Xtrackers.com. Please read it carefully before investing.

The brand Xtrackers represents all systematic investment solutions. Xtrackers ETFs in the U.S. are managed by DBX Advisors LLC (the Advisor) and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA and is not affiliated with ALPS.

Investing involves risk, including possible loss of principal. Stocks may decline in value. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Performance of a fund may diverge from that of an underlying index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies.

The Nasdaq Global Artificial Intelligence and Big Data Index NTR is designed to track the performance of companies engaged in the following themes: Deep Learning, NLP, Image Recognition, Speech Recognition & Chatbots, Cloud Computing, Cybersecurity and Big Data.

Cannot invest directly in an index.

Companies involved in artificial intelligence and big data face intense competition, may have limited product lines, markets, financial resources and personnel. Artificial intelligence and big data companies are also subject to risks of new technologies and are heavily dependent on patents and intellectual property rights and the products of these companies may face obsolescence due to rapid technological developments. Incorporation of ESG criteria in the fund’s investment strategy does not guarantee a return or protect against a loss, limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus. This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Past performance is no guarantee of future results.

War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led, and, in the future, may lead to significant disruptions in U.S. and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investments.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.

Nasdaq® and the Nasdaq Global Artificial Intelligence and Big Data™ Index are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by DWS. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). R-102006_2 (07/24) DBX006117 (07/24)

Kenny Juarez

1-212-454-9994

kenny.juarez@dws.com

Brendan Moffitt

1-212-454-0013

Brendan.Moffitt@dws.com

Source: DWS

FAQ

What is the ticker symbol for the new Xtrackers Artificial Intelligence and Big Data ETF?

The ticker symbol for the new Xtrackers Artificial Intelligence and Big Data ETF is XAIX, listed on NASDAQ.

How does the XAIX ETF select companies for inclusion?

XAIX uses Nasdaq's systematic patent screening process to identify companies actively filing patents related to AI and Big Data technologies such as Deep Learning, Natural Language Processing, and Cloud Computing.

What is the expense ratio of the Xtrackers Artificial Intelligence and Big Data ETF (XAIX)?

The Xtrackers Artificial Intelligence and Big Data ETF (XAIX) has a net/gross expense ratio of 0.35%.

How many funds are in the Xtrackers U.S. product suite after the launch of XAIX?

After the launch of XAIX, the Xtrackers U.S. product suite expanded to 40 funds.

Xtrackers Artificial Intelligence and Big Data ETF

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