Financial News
Xtrackers by DWS Launches Artificial Intelligence and Big Data ETF XAIX
New thematic fund utilizes Nasdaq’s systematic patent screening process to identify promising AI innovators and disruptive technology companies of the future
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)
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805236452/en/
Contacts
Kenny Juarez
1-212-454-9994
kenny.juarez@dws.com
Brendan Moffitt
1-212-454-0013
Brendan.Moffitt@dws.com
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