The STOXX Artificial Intelligence thematic index suite offers investors targeted exposure to companies at different stages and involvement in Artificial Intelligence (AI). By combining revenue and patent screens, the indices identify both established leaders and emerging innovators in AI technology.
Key facts
- The index offers targeted exposure to companies that play a pivotal role in developing and advancing the foundational components of AI and are benefiting from the ongoing progress in AI technology.
- FactSet Revere data allow detailed and accurate revenue breakdown of eligible companies.
- EconSight’s patent data allow identification of innovators in emerging technologies.
Key benefits
Exposure to a high-growth industry
AI is a rapidly evolving field with transformative applications across industries such as healthcare, finance, manufacturing, and more. Investing in an AI index allows to gain exposure to companies driving and benefiting from this technological revolution.
Diversification
An AI index includes a basket of companies involved in various aspects of AI, such as software, hardware, cloud computing, and data processing. This diversification reduces risk compared to investing in individual stocks.
Capturing long-term tends
AI is expected to be a key driver of future innovation, with increasing adoption in automation, robotics, machine learning, and beyond. Investing in an AI index enables to capitalize on these long-term structural growth trends.
Access to leading innovators
The indices includes top-performing companies at the forefront of AI research, development, and application, offering access to industry leaders and innovators.
Index performance
FAQs
A recent McKinsey report estimated that AI software and services could generate up to $22.9 trillion annually in total economic potential by 2040. With the STOXX Artificial Intelligence index suite, market participants can now target different investment opportunities across the AI value chain. (Growth industries and the next big arenas of competition | McKinsey, page 90)
The STOXX Thematic Framework is designed to precisely capture thematic exposures through a systematic, transparent, and rule-based indexing approach. The STOXX AI indices target companies along three main tier groups: Pure Players; Market Leaders and Innovators. These companies are identified through revenue-based, patents-based, or combined screening methodologies. The revenue/patents approach enables the index to capture a diverse range of companies at different stages of AI adoption. This methodology strikes a flexible balance between maintaining purity of exposure and identifying higher-growth opportunities within the AI theme.
Although all indices in the STOXX Artificial Intelligence index suite target the AI theme, they focus on different stages of AI development or different segments of the AI market. The STOXX Global Artificial Intelligence index represents the more mature portion of the theme, selecting the Pure Players from a revenue perspective. In contrast, the STOXX Global Artificial Intelligence Innovators index represents the innovation stage of the theme, capturing companies with superior innovation potential based on their R&D activities (as measured by patents). Next, the STOXX World AC AI Market Leaders index selects the strongest players in the theme, i.e. those that excel in their AI segment peer group by establishing themselves as the top players, measured in terms of the global listed market output in the defined AI segment. Meanwhile, the STOXX Global AI Infrastructure index and the STOXX Global AI Adopters and Applications index aim to capture the more representative segments of the theme in the public listed market across all thematic development stages.
Innovation is a critical KPI when assessing a company’s potential future growth in many market segments. Thematic selection focuses on identifying companies with the highest quality patents or those with the highest research specialization in the theme. This enables the STOXX Thematic Framework to capture market segments with real innovations driving the theme’s growth.
Index membership includes companies that:
- Have substantial output related to the theme (as pure or diversified players),
- Are market leaders in total output related to the theme, and/or
- Show innovation leadership through patents.
This approach ensures the STOXX Thematic Framework includes companies excelling in or poised to lead in the theme through their business and innovation.
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