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Innovation Shares launches NextGen Vehicles & Technology ETF

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Exchange traded fund sponsor Innovation Shares has launched the Innovation Shares NextGen Vehicles & Technology ETF (EKAR), the first artificial intelligence (AI) driven ETF to provide investors with exposure to the universe of stocks involved in the growing categories of electric and self-driving/autonomous vehicles.  

“The auto industry is poised to undergo a dramatic shift away from internal combustion engines to electric batteries. Meanwhile, the adoption of autonomous vehicles is being supported in numerous countries by a growing trend towards shared mobility and ‘mobility-as-a-service,’ as well as rapid technological advancements and an evolving regulatory environment,” says Matt Markiewicz, Managing Director with Innovation Shares. “These trends are likely to upend not only the auto industry, but also the transportation of goods and people. EKAR is designed to provide a way for investors to participate in these rapidly emerging industries.”
 
EKAR tracks an index designed to give investors exposure to a global basket of stocks that are closely involved in the growth of these markets, placing index constituents in one of four categories based on relevance: 1. Battery Producers; 2. Original Equipment Manufacturers (OEMs); 3. Suppliers; and 4. Semiconductors & Software.
 
The index underlying EKAR was constructed utilising a patent-pending natural language processing algorithm that screens for global stocks that are believed to have a current or future economic interest in the growth of electric and autonomous vehicles. Recent estimates have found that autonomous driving technology could represent a USD7 trillion global growth opportunity by 2050, dramatically altering the way goods are shipped, and the ways in which people travel and consume goods and services.
 
“Through the use of textual analysis and artificial intelligence, our approach is able to identify key companies that might otherwise not be identified by traditional analytical research,” says Markiewicz. “As with KOIN, we believe that innovative themes are best captured by innovative approaches to indexing, and that’s exactly what we’re bringing to investors with EKAR.”

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