transcript
Hello. I’m Derek Yang, Senior Investment Strategist at KraneShares. Today we’ll be talking about KraneShares’ artificial intelligence and technology ETF, AGIX.
The arrival of the AI revolution
Artificial intelligence is transforming industries around the world today. From customer service to healthcare to finance. Companies like Nvidia and ChatGPT are right at the forefront. ChatGPT is now the fastest app to reach 100 million users in just two months, and Nvidia stock has hit an all-time high, but this is just the beginning.
According to McKinsey, generative AI could add trillions of dollars of value to the global economy over the next few years. We are currently only seeing the tip of the iceberg, primarily through Magnificent Seven stocks.
AGIX and the artificial intelligence ecosystem
We believe there are opportunities beyond Mag7. Investors need to consider three layers of the AI ecosystem. First, there’s AI hardware, where companies manufacture and design chips such as GPUs to provide cooling and power to data centers. Using these hardware, companies can build an AI infrastructure layer and provide services such as cloud data management and cybersecurity for AI models. The infrastructure can then be used to create AI-native applications that enable businesses and customers to reduce costs, increase productivity, and improve the customer experience. AGIX currently allocates 40/40/20 to AI hardware, infrastructure, and applications.
KraneShares Artificial Intelligence and Technology ETF AGIX is designed to invest in AI ecosystems that capture the entire AI value chain.
New artificial intelligence ETF
Started with over 2000 companies. We have a framework that narrows down our portfolio of AI-enabled and AI-related companies to 40-50 companies. AGIX uses a proprietary AI score to assess enterprise relevance and readiness. Factors such as how much AI revenue is, the visibility of AI revenue, the evolution of AI products, and how AI will disrupt business models will be considered.
Only a few companies meet our standards for AI readiness and relevance. AGIX aims to capture current AI leaders and potential AI winners.
The AI landscape is very dynamic. Our quarterly index review aims to reflect the latest changes in the AI revolution in our holdings.
To make your portfolio AI-enabled, visit KraneShares.com/AGIX to learn more.
Thank you for visiting.
Click here for AGIX standard performance, top 10 holdings, risks and other fund information.
This article contains the opinions of Derek Yan. It should not be considered investment advice or a recommendation of any particular security.
Stocks held may change. The securities mentioned do not constitute the entire portfolio and may represent a small portion of the Fund as a whole.
