Industry Updates

AI and tech ETFs are all the rage

David Tuckwell

Today's listings


Artificial intelligence and technology are all the rage these days.

In Korea, two new ETFs will be listed this week, each of which tracks tech stocks with big visions. Kodex, the ETF issuer run by Korean chaebol Samsung, has launched a robotics and automation ETF (276990). 276990 will synthetically track ROBO Global's "Robotics & Automation Index", which as the name suggests, tallies up companies from around the world involved in robotics and automation. Samsung is not the first issuer to peg an ETF to this index. In Europe, ETF Securities has a product tracking it; in the US, Exchange Traded Concepts has one.

The second ETF comes from KBStar, the ETF issuing arm of Korea bank, which is launching a "Global 4th Industry Revolution IT ETF" (276650). The ETF will track the S&P Global 1200 Information Technology Index. In the US, iShares also runs an ETF that tracks this index. 276650 will use swaps to track its benchmark.

Taiwan Other new issues come from nearby Taiwan, where asset manager Fuh Hwa has listed three new fixed income ETFs.

• 00710B, the "Fuh Hwa 1-5 Yr High Yield ETF" will track the performance of non-investment grade high-risk bonds. • 00711B, the "Fuh Hwa Emerging Market 10+ Yr Bond ETF" will track the long-term debts of developing countries. • 00712, the "Fuh Hwa FTSE Mortgage REITs ETF" will track mortgages mostly in the US.

Today's ETF news from around the web

Major issuers want a bitcoin ETF

The Winkelvoss brothers attempt to launch a bitcoin ETF were rejected by the SEC at the start of the year, so too were plans by SolidX. Despite the rejections, more issuers are trying to get in on the game, the latest being VanEck.

How the Big Three got big

A useful history lesson on how the big three issuers - BlackRock, State Street and Vanguard - came to be so dominant. State Street has seniority as the oldest issuer got first mover advantage. BlackRock is the biggest asset manager in the world, meaning it brings the numbers and resources. Vanguard has the lowest costs, meaning it wins on price.

Apple is everywhere

Apple is listed in every factor for smart beta ETFs: it has momentum, it has value, it has quality and it has growth. As America's largest corporation, it is listed in every major index. Making things better still, it's even in ESG ETFs.

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