ETF manager First Trust said this week it is planning to launch a new index-based ETF, the First Trust Nasdaq Artificial Intelligence and Robotics ETF.

The fund will seek investment results that correspond generally to the price and yield, before the fund’s fees and expenses, of an index called the Nasdaq CTA Artificial Intelligence and Robotics Index.

The index, which is developed by Nasdaq and the Consumer Technology Association, is designed to track the performance of companies engaged in artificial intelligence, robotics and automation.

Recent developments in AI and robotics are revolutionising business and transforming everyday lives. AI allows machines to complete various “human” tasks, enabling robots to solve problems and interact with their environments.

“It is clear that the growing advances in AI and Robotics, while still in early days, are increasing the rate and impact of change,” said Dave Gedeon, Vice President and Head of Product Development for Nasdaq’s Global Indexes. “The Nasdaq CTA Artificial Intelligence and Robotics Index is a new way to benchmark the performance of the companies leading the charge in this dynamic sector.”

Gedeon said that any of the technological developments taking place in AI, robotics, and automation are astounding, and that there are strong incentives, in both the public and the private sector, to find ways to harness these innovations.

The fund will list and principally trade its shares on The Nasdaq Stock Market. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

As with other ETFs, investors should be aware that buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share’s net asset value.

Shares in the ETF may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from a fund by authorized participants.

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Commodities and Shares Editor
23rd February 2018
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