Xtrackers AI and Big Data ETF (XAIX)

Overview

The fund in focus is a specialized investment vehicle designed to track the performance of a carefully selected mix of companies. These companies are at the forefront of innovation in Artificial Intelligence (AI) and its various sub-themes, including Deep Learning, Image Recognition, Natural Language Processing, Speech Recognition, and Chatbots. By investing predominantly in the securities that constitute the underlying index, the fund aims to offer investors exposure to leading firms from both developed and emerging markets that are pioneering these transformative technologies. Given its commitment to investing at least 80% of its assets in the components of the underlying index, the fund leans heavily towards these thematic areas, though it is classified as non-diversified due to its focused investment strategy.

Products and Services

The fund’s portfolio is comprised of investments that specifically target companies involved in the development and application of artificial intelligence across various dimensions:

• Deep Learning: Investments in companies that focus on deep learning cover those engaged in advancing neural networks and algorithms that mimic the human brain. This technology is pivotal in enhancing machine learning models and is widely used in data analysis, autonomous vehicles, and personalized medicine, offering growth opportunities in these sectors.
• Image Recognition: The fund targets companies developing image recognition technologies. These technologies enable computers to identify and process objects in images and videos in the same way humans do. Key applications include security surveillance, autonomous driving, and medical imaging, sectors where rapid advancements can lead to significant returns for investors.
• Natural Language Processing (NLP): Investments also extend to the realm of NLP, where companies are making progress in enabling machines to understand, interpret, and respond to human languages in a meaningful way. This technology is crucial for developing smart assistant devices, translation services, and customer service automation tools, providing a broad market with potential for growth.
• Speech Recognition: The portfolio includes companies specializing in speech recognition technology, a subset of NLP. This technology allows devices to recognize and translate spoken language into text. Its applications range from voice-activated assistants to real-time transcription services, presenting substantial ventures for investment.
• Chatbots: Finally, the fund invests in companies that are leading the way in chatbot technology. These AI-driven programs simulate conversations with users via textual or auditory methods, extensively used in customer service, virtual assistance, and interactive entertainment. As businesses continue to adopt chatbots for improving customer engagement and operational efficiency, the sector shows promising investment prospects.