The L&G Artificial Intelligence UCITS ETF (AIAI) is an Ireland-domiciled thematic equity ETF managed by L&G. AIAI represents the fund's USD trading line on the London Stock Exchange.

The fund seeks to track the ROBO Global Artificial Intelligence Index, a benchmark comprising global companies involved in the development, provision, and application of artificial intelligence technologies.

AIAI follows a passive investment strategy and uses physical replication. The fund invests directly in equities with the objective of closely tracking the composition and performance of its benchmark.

The benchmark includes companies with meaningful exposure to the artificial intelligence ecosystem, covering both businesses that provide the infrastructure required to develop AI technologies and companies that apply AI across products, services, and different economic activities. 

Composition / Exposure Profile

AIAI provides exposure to different areas involved in the development and application of artificial intelligence, which may include:

• Semiconductors.

• Cloud computing.

• Big data and analytics.

• Network security.

• Cognitive computing.

• Process automation.

• E-commerce.

• Health care technology.

• Industrial automation.

The strategy can broadly be divided between companies involved in AI infrastructure and those developing AI applications and services. This provides exposure both to the resources needed to support AI systems and to the commercial adoption of the technology across different industries.

Geographic exposure is global, with significant representation from the United States as well as companies across Asia, Europe, and other regions. As a thematic ETF, AIAI can have greater concentration in technology-related companies and industries than a broad global equity index.

Structure and Costs

The fund has the U.S. dollar as its base currency, and AIAI represents the USD trading line on the London Stock Exchange. The ETF has ongoing charges of 0.49% per year, uses physical replication, and is domiciled in Ireland. It operates under the UCITS framework.

AIAI follows an accumulating income policy. Dividends received from portfolio companies are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The L&G Artificial Intelligence UCITS ETF was launched in 2019 to provide exposure to companies involved in the development and application of artificial intelligence technologies.

Since its launch, the fund has maintained a passive strategy linked to the ROBO Global Artificial Intelligence Index, covering companies involved in both AI infrastructure and AI-related applications and services.

Throughout its history, AIAI's performance has reflected developments across different areas of artificial intelligence, including semiconductors, computing infrastructure, data analytics, software, and automation, as well as changing growth expectations for companies exposed to the theme.

Additional Information

L&G Artificial Intelligence UCITS ETF (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $765.65 million.

Over the past 12 months, L&G Artificial Intelligence UCITS ETF recorded a return of 47.14%, with its price trading between $25.21 and $44.76 during the same period.

The ETF is traded under the ticker AIAI.