Global X ETFs Europe has announced the joint launch of the Global X Artificial Intelligence UCITS ETF (AIQU) and Global X Defence Tech UCITS ETF (ARMR).
The firm writes that these ETFs are tailored to offer European investors access to two evolving sectors, both of which are becoming increasingly interlinked due to the rapid development of technology.
“Burgeoning technologies have presented a host of new threats to national security. While traditional military threats remain, cyber-attacks now have the potential to destabilise entire economies.
“This has encouraged increased public and private investment in emerging defence technologies to ensure that national cyber vulnerabilities are accounted for. It is projected that global military and defence spending will grow by approximately 40 per cent to surpass USD3.3 trillion by 2030, an increasing share of which will likely go towards artificial intelligence (AI), cybersecurity, and other defence technologies. ARMR seeks to invest in companies poised to possibly benefit from the latest developments in cutting-edge technologies contributing to national defence.
“In addition to its role in defence technology, AI has the potential to revolutionise economies across the globe. It is projected that by 2030, AI could potentially contribute USD15.7 trillion to the global economy, a figure nearly on par with the European Union’s entire GDP of USD18.3 trillion in 2023. Additionally, generative AI could contribute between USD2.6 trillion and USD4.4 trillion to the global economy annually. AIQU aims to capture companies that stand to benefit from the potential growth and rapid commercialisation of AI.”
“We are dedicated to providing our investors with access to the most relevant and innovative investment themes,” says Rob Oliver, Head of Global X ETFs Europe. “The launch of our AI and Defence Tech UCITS ETFs underscores our commitment to expanding our brand in Europe and empowering investors to capitalise on sectors that are vital to the future of our continent. By focusing on AI and defence technology, we are offering strong growth potential while supporting Europe’s strategic priorities for technological advancement and security.”
The Global X Artificial Intelligence UCITS ETF (AIQU) is designed to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence Index. The fund carries a total expense ratio of 0.40 per cent. The Global X Defence Tech UCITS ETF (ARMR) will carry an expense ratio of 0.50 per cent and seeks to track the performance, before fees and expenses, of the Mirae Asset Defence Tech Index.
