Global X ETFs Europe launches AI and defence technology ETFs

Focused on European expansion

Sorin Dojan
clock • 1 min read
The two UCITS ETFs will be made available to European investors and will focus on artificial intelligence and military technology.
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The two UCITS ETFs will be made available to European investors and will focus on artificial intelligence and military technology.

Global X ETFs Europe has bolstered its thematic suite with a dual ETF launch targeting AI and defence technology.

Aimed at its European base, the launches tap into "two evolving sectors, both of which are becoming increasingly interlinked due to the rapid development of technology", the provider said.

The Global X Artificial Intelligence UCITS ETF (AIQU) will enable investors access to companies that will benefit from the "potential growth and rapid commercialisation" of artificial intelligence, Global X ETFs Europe said.

According to its research, it is projected that by 2030, AI could potentially contribute $15.7trn to the global economy, a figure nearly on par with the European Union's entire GDP of $18.3trn in 2023.

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Additionally, the Global X Defence Tech UCITS ETF (ARMR) will invest in businesses that will benefit from the latest technologies in the national defence sector, as military tensions and the risk of conflict worldwide have led to a hike in global military expenditure.

According to the Stockholm International Peace Research Institute, overall global military spending is on the rise, having reached $2.4trn in 2023.

AIQU aims to match the performance of the Indxx Artificial Intelligence & Big Data index, while ARMR tracks the Mirae Asset Defence Tech index.

The former will have a 0.4% expense ratio, while ARMR has a 0.5% fee.

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Rob Oliver, head of Global X ETFs Europe, said the launches will help the firm expand its offering in Europe, and enable investors "to capitalise on sectors that are vital to the future of our continent".

"By focusing on AI and defence technology, we are offering strong growth potential while supporting Europe's strategic priorities for technological advancement and security," he said.

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