Invesco Launches Trio of Thematic ETFs Focused on AI, Cybersecurity, and Defence
4 NOV, 2024
By Jose Luis Palmer from RankiaPro Europe
Invesco has announced the launch of three thematic exchange-traded funds (ETFs) targeting high-growth sectors: artificial intelligence (AI), cybersecurity, and defence. Each ETF is designed to give investors exposure to global companies driving these transformative industries.
The ETFs, all with an annual charge of 0.35%, follow customized indices created by Kensho, a specialist branch of S&P Global Indices known for its application of AI in identifying investment opportunities across future-focused sectors. The indices are tailored to highlight companies directly advancing these technologies and provide ESG-filtered exposure where applicable.
ETF Focus Areas and Details
- Invesco Artificial Intelligence Enablers UCITS ETF
- Classification: Article 8
- Focus: Invests in companies developing technologies and infrastructure supporting AI advancements, providing investors with exposure to a rapidly evolving industry.
- Invesco Cybersecurity UCITS ETF
- Classification: Article 8
- Focus: Targets companies that protect digital assets, offering solutions against the growing threat of cyber-attacks.
- Invesco Defence Innovation UCITS ETF
- Classification: Article 6
- Focus: Invests in companies focused on defence technology, including weaponry and border security systems to address global security needs.
ESG Screening and Thematic Focus
The AI and cybersecurity ETFs integrate ESG screening, excluding companies that do not comply with UN Global Compact principles or rank in the lowest 10% of ESG scores within the S&P Global BMI Index. This ensures a responsible investment approach in these sectors. Meanwhile, the defence-focused ETF aligns with Article 6 standards, concentrating on the sector without ESG screening.
Kensho’s Advanced Screening Process
Kensho’s initial screening process utilizes natural language processing (NLP) to identify companies with significant exposure to each theme. The companies are then classified as either "core" or "non-core" based on their alignment with the theme, with core companies—those primarily focused on each sector—receiving an overweight in the indices to emphasize pure-play innovation.
While the potential of AI has captured people’s imagination, solutions for cybersecurity and defence are also gaining traction as global threats emerge. For investors, the question is how best to capture these opportunities today and into the future. Kensho’s expertise and AI-driven approach make them an ideal partner for delivering focused exposure to these evolving sectors.
Gary Buxton, Head of EMEA and APAC ETFs at Invesco
Our new thematic ETFs stand apart on cost, with an annual charge of 0.35%, and the expertise of Kensho. These funds emphasize companies most capable of impacting their sectors, allowing investors to access targeted and cost-effective thematic exposure.
Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco
Expanding Invesco’s Thematic ETF Suite
This new launch complements Invesco’s existing thematic ETF offerings, which include funds focused on blockchain technology, clean energy, and biotech. The new ETFs cater to investors seeking exposure to the trends shaping tomorrow’s world while prioritizing affordability and alignment with ESG standards where relevant.
