News & Research

Ladi Williams, Head of Thematics and Strategy Index Product Management at STOXX, talks to ETF Stream about the STOXX index suite targeting the artificial intelligence theme.

With five thematic indices targeting the Artificial Intelligence theme, STOXX offers issuers and investors flexible opportunities to harness the entire value chain around the technology. A new whitepaper explores the construction of the indices through a life-cycle thematic framework.

The STOXX Global AI Infrastructure and STOXX Global AI Adopters and Applications thematic indices allow investors targeted exposure to companies in different stages and involvement in AI, as the technology is deployed. The indices employ a combination of revenues and patents screens to select both established businesses as well as innovators.

The ETF was launched in December 2022 and follows a unique patents-based stock selection methodology targeting innovators that are creating and deploying the Metaverse.

STOXX uses a lifecycle framework to identify investable themes based on their conceptual and business evolution. Depending on the point in that cycle, either patents and/or revenues may provide the best signal to select the key contributors and main beneficiaries of that theme.

A year ago, Invesco switched the underlying strategies for three US-listed ETFs that target technology themes to three STOXX indices. Since then, the ETFs have shown very strong performance as investors expect companies exposed to those themes to benefit from increasing demand in new technologies.

Eurex’s Mezhgan Qabool explains how demand to invest in chipmakers drove the launch of the STOXX Semiconductor 30 index futures in March, and what the new product offers for portfolios.

Eight STOXX Thematic indices underlying ETFs in Europe had their annual rebalancing in June, with six of them seeing updates to the business sectors associated with the targeted theme. The ‘purity’ ratio, or theme-related revenue, remains above 80%.

US stocks rose in June as investors weighed the prospects for interest-rate cuts amid slowing inflation. European shares fell as results from the European Parliamentary elections increased political risk.

Nvidia’s formidable stock performance has lifted the company atop many indices. Thematic strategies can offer a more nuanced, and larger, exposure to the chipmaker’s shares.

Stocks rose for the sixth month in seven in May, rebounding from losses in April, as investors continued to weigh the prospects for interest-rate cuts and amid higher-than-expected earnings reports.

Stocks fell for the first month in six in April as US inflation data stoked investors’ concerns that interest rates in the world’s largest economy may not drop this year.