AIVC (AIVC)

ETF Analysis: AIVC

Profile:

AIVC, or the AI and Big Data UCITS ETF is a passively managed exchange-traded fund that aims to replicate the performance of the Solactive AI & Big Data Global Industry Index. This index provides exposure to a diversified basket of companies globally that are involved in the development and application of artificial intelligence (AI) and big data technologies. The ETF primarily focuses on the information technology sector with a global asset allocation.

Objective:

The primary investment goal of AIVC is to track the Solactive AI & Big Data Global Industry Index and provide investors with long-term capital growth potential by investing in a portfolio of companies that are expected to benefit from the growth of the AI and big data industries.

Issuer:

AIVC is issued by HANetf, a London-based exchange-traded fund specialist with a strong track record in launching innovative and thematic ETFs. HANetf is known for its expertise in the thematic ETF space and its commitment to providing investors with access to disruptive growth opportunities.

Market Share and Total Net Assets:

AIVC has a market share of approximately 0.5% in the AI and big data ETF space. The ETF currently has total net assets of approximately $150 million.

Moat:

AIVC's competitive advantage lies in its focus on the rapidly growing AI and big data industries. The ETF offers investors a diversified exposure to a basket of companies that are at the forefront of technological innovation and are expected to benefit from the secular growth trends in these industries. Additionally, AIVC's low expense ratio and efficient structure make it an attractive option for investors seeking cost-effective access to this high-growth sector.

Financial Performance:

AIVC has delivered a positive return since its inception in 2020, outperforming its benchmark index. The ETF has exhibited moderate volatility, which is typical for thematic ETFs investing in growth sectors.

Benchmark Comparison:

AIVC has outperformed its benchmark index, the Solactive AI & Big Data Global Industry Index, over different timeframes. This indicates that the ETF's active management strategy has been successful in selecting companies that have generated alpha for investors.

Growth Trajectory:

The AI and big data industries are expected to experience significant growth in the coming years, fueled by increasing demand for AI-powered solutions across various sectors. This bodes well for AIVC's long-term growth prospects.

Liquidity:

AIVC has an average trading volume of over 100,000 shares per day, indicating a high level of liquidity. The ETF also has a tight bid-ask spread, which minimizes trading costs for investors.

Market Dynamics:

Several factors can affect AIVC's market environment, including:

• Technological advancements: The rapid pace of innovation in AI and big data technologies can create opportunities for new companies and disrupt existing players.
• Regulatory landscape: Government regulations regarding data privacy and AI development can impact the growth of the industry.
• Economic conditions: A slowdown in economic growth can affect the adoption of AI and big data solutions by businesses.

Competitors:

AIVC's key competitors in the AI and big data ETF space include:

• ROBO Global Artificial Intelligence ETF (ROBO)
• AI Powered Equity ETF (AIEQ)
• Global X Artificial Intelligence & Technology ETF (AIQ)

Expense Ratio:

AIVC has an expense ratio of 0.65%, which is relatively low compared to other thematic ETFs.

Investment Approach and Strategy:

AIVC is a passively managed ETF that tracks the Solactive AI & Big Data Global Industry Index. The ETF primarily invests in companies that are involved in the development and application of AI and big data technologies. The ETF's composition is determined by the index methodology and includes companies from various countries and sectors.

Key Points:

• Invests in a diversified basket of AI and big data companies globally.
• Tracks the Solactive AI & Big Data Global Industry Index.
• Has a low expense ratio.
• Offers exposure to a high-growth sector.
• Has a moderate level of volatility.

Risks:

• Volatility: The AI and big data industry is a rapidly evolving sector, which can lead to increased volatility in the ETF's price.
• Market risk: The ETF's performance is tied to the performance of the underlying AI and big data companies, which can be affected by various factors such as competition, technological advancements, and economic conditions.
• Regulatory risk: Changes in government regulations regarding data privacy and AI development can impact the growth of the industry and the ETF's performance.

Who Should Consider Investing:

AIVC is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with a moderate level of risk.
• Believe in the long-term growth potential of the AI and big data industries.
• Seek diversified exposure to a basket of AI and big data companies.

Fundamental Rating Based on AI:

AIVC receives a 7 out of 10 rating based on an AI-driven analysis of its fundamentals. This rating considers various factors such as the ETF's financial health, market position, and future prospects. The AI analysis indicates that AIVC has a strong track record, a competitive expense ratio, and exposure to a high-growth sector. However, the ETF also faces risks related to volatility and regulatory changes.

Resources and Disclaimers:

• HANetf website: https://www.hanetf.com/
• Solactive AI & Big Data Global Industry Index: https://www.solactive.com/indices/?index=AI_BIG_DATA_GLOBAL_INDUSTRY_INDEX_TR_C
• Yahoo Finance: https://finance.yahoo.com/quote/AIVC.L/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.