Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 35bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 09 Apr 2025 |
| Ticker: XAID |
| ISIN: IE00BGV5VN51 |
This investment vehicle offers targeted exposure to the transformative and rapidly expanding fields of artificial intelligence (AI) and big data. It is designed for investors seeking to capture the growth potential of companies at the forefront of this technological revolution. The underlying portfolio consists of global firms that are materially involved in the development and application of AI and data analytics. This includes companies engaged in machine learning, cognitive computing, natural language processing, and the infrastructure that supports massive data sets. By investing in this product, individuals gain a diversified entry point into a theme that is reshaping industries, from autonomous vehicles and personalised medicine to financial services and e-commerce, without needing to select individual company stocks.
The strategy is passively managed, aiming to replicate the performance of an index specifically constructed to represent the AI and big data ecosystem. This approach ensures a systematic and transparent selection of relevant companies while typically offering a lower cost structure compared to actively managed funds. The global scope of the fund provides diversification across different economic regions, capturing innovation wherever it occurs, including established tech hubs and emerging centers of excellence. The portfolio is rebalanced periodically to ensure it remains aligned with the evolving landscape of the AI and big data industries, capturing new entrants and adjusting to market shifts.
This thematic investment is particularly suitable for long-term, growth-oriented investors who believe in the enduring impact of data-driven technologies. As an accumulating share class, any dividends paid by the constituent companies are automatically reinvested back into the fund, which can enhance the effects of compounding over time. This makes it an efficient option for building capital without the need to manage dividend income. It serves as an excellent satellite holding within a broader portfolio, allowing for a strategic allocation to one of the most significant structural growth trends of the 21st century.
