LGIM expands thematic ETF range with triple launch

Howie Li LGIM

Legal & General Investment Management (LGIM) has expanded its thematic ETF range with the launch of three products offering investors exposure to artificial intelligence, healthcare breakthroughs and clean water, ETF Stream can reveal.

The three ETFs are listed on the London Stock Exchange with total expense ratios (TERs) of 0.49%.

The ETFs are designed to invest in markets that have the potential to experience rapid growth due to changes driven by technological advancements.

The L&G Artificial Intelligence UCITS ETF (AIAI) looks to tap into the artificial intelligence industry which has the potential to increase global GDP by $15.7trn by 2030.

Tracking the ROBO Global Artificial Technology index, AIAI will include companies building AI engine and platform solutions, as well as those applying AI capabilities for digital transformation purposes.

The L&G Healthcare Breakthrough UCITS ETF (DOCT) tracks the ROBO Global Healthcare Technology and Innovation index, which is made up of companies leading in the digitalisation the healthcare supply chain, advances in healthcare robotics and next-generation diagnostic tools.

The L&G Clean Water UCITS ETF (GLUG) offer investors exposure to companies focused on the world’s management of water including those engaged in water production, processing and the provision of other related services. GLUG tracks the Solactive Clean Water index while working Global Water Intelligence on the index design.

According to the United Nations, 1.8bn people will be living in countries with absolute water scarcity by 2025 while two-thirds of the world’s population could be living under water-stressed conditions.

LGIM places a special emphasis on working with industry experts in the respective fields which leads to an active index design.

Howie Li (pictured), head of ETFs at LGIM, commented: “All sectors and businesses are being transformed by disruptive technology and we are seeing increasing demand from investors looking to access these themes in a cost-efficient way.

“These ETFs offer investors the opportunity to hold companies directly benefiting from these themes, with bespoke indices constructed around active selection and research and implemented in a systematic and rules-based way.”

What is driving the boom in thematic ETF launches?

The new launches expand on the firm’s existing thematic ETF range which includes exposures to cyber security, robotics and automation, eCommerce and battery technology.

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