Every now and again, new exchange-traded funds (ETFs) join the ASX. This is an exciting time for many investors who love the passive, hands-off approach that ETFs can offer, alongside the easy access to difficult markets and industries.
Listings of new ASX ETFs are a fairly regular occurrence on the ASX boards. After all, it was only last month that we looked over the latest offerings from popular ETF provider Vanguard.
Today, we'll examine what Global X is bringing to the ASX ETF table.
ETF provider Global X will soon bring two new funds to the ASX for investors to consider.
The first of these funds is to be known as the Global X Artificial Intelligence Infrastructure ETF, with the ticker code 'AINF'.
Here's how Global X is pitching this idea:
The growth and availability of AI depend on the components used to power it. While chips and software dominate headlines, the physical backbone of AI is often overlooked. AINF provides dedicated exposure to the energy, materials and data infrastructure that make AI possible. The future is AI, but its foundation is infrastructure.
So, it looks as though the provider is planning on offering something different to the artificial intelligence-focused ETFs already available on the ASX. Funds like the BetaShares Robotics & AI ETF (ASX: RBTZ) and the Global X Artificial Intelligence ETF (ASX: GXAI) focus on companies that are pioneering AI technology, such as Tencent, Samsung, Apple, NVIDIA, Netflix, and Microsoft.
We don't yet know what companies the new AI Infrastructure ETF will hold. However, the provider's similarly named fund in Canada currently invests in names like Antofagasta plc, Schneider Electric SE, and Amphenol Corp.
In addition to the AI Infrastructure ETF, Global X is also planning on launching a China-focused fund. This fund will be known as the Global X China Tech ETF and will have the ticker code 'DRGN'.
As its name implies, this ETF will be focused on China's technology sector. Here's how Global X characterises its strategy:
China is home to some of the world's most dynamic and disruptive tech companies, built on decades of development and expansion. These companies span all areas of tech, from automation and industrial technology to globally relevant platforms and infrastructure providers. Capture these market leaders in one ETF with DRGN.
The ASX is already home to a few China-focused ETFs. We covered two just last week.
As we discussed then, a major factor in China-based funds is which exchanges they cover. Some ETFs track companies listed on the internationally facing Hong Kong exchange. Others tend to opt for the domestically focused Shanghai or Shenzhen exchanges. As such, it will be interesting to gain some more insights into how this ETF plans to build a portfolio.
It's not yet clear when Global X plans on launching these two ASX ETFs, so keep your eyes open for these two names to join the ASX boards in the next few weeks and months.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.