Invesco Launches New ETFs Targeting AI, Cybersecurity, and Defense Sectors

Invesco Launches New ETFs Targeting AI, Cybersecurity, And Defense. Here's How Some Of Their Peers Have Performed In The Past Year - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Invesco has unveiled a new series of thematic exchange-traded funds (ETFs) that focus on artificial intelligence, cybersecurity, and defense sectors. These funds aim to leverage emerging trends within these industries. What Happened: The newly introduced ETFs, named Invesco Artificial Intelligence Enablers, Cybersecurity, and Defence Innovation Ucits, are based on benchmarks crafted by Kensho, a division of S&P Global Indices. Kensho utilizes natural language processing to pinpoint companies with significant involvement in each theme, categorizing them into "core" and "non-core" groups, Financial Times reported on Thursday. As per Invesco, core companies generate a substantial portion of their revenue from products and services aligned with these themes, while non-core companies provide essential inputs without focusing on end products. The AI enablers strategy targets firms advancing AI technology and infrastructure, whereas the cybersecurity ETF invests in companies protecting enterprises from unauthorized electronic access. The defense fund provides exposure to companies developing advanced weapons and defensive systems Here are a few ETFs and how they fared in the past year, as per Benzinga Pro: Artificial Intelligence iShares U.S. Technology ETF ITW increased 45.40% over the year with holdings like Apple Inc. AAPL, Nvidia Corp. MSFT and Microsoft Corp. MSFT. Fidelity MSCI Information Technology Index ETF FTEC, with similar exposure, rose 43.17%. First Trust Dow Jones Internet Index Fund FTX, which gives exposure to Meta Platforms, Inc. META, Amazon.com Inc. AMZN, Netflix, Inc. NFLX, increased 45.59%. Cybersecurity First Trust NASDAQ Cybersecurity ETF CIBR increased 38.08%. Its holdings include Cisco Systems, Inc. CSCO, CrowdStrike Holdings, Inc. CRWD and Broadcom Inc. AVGO. Amplify Cybersecurity ETF HACK rose 39.57%. Along with Broadcom, and Cisco, the ETF's major holdings also include Palo Alto Networks, Inc. PANW, and General Dynamics Corporation GD. iShares Cybersecurity & Tech ETF IHAK with exposure to companies such as SentinelOne, Inc. Class A S, and Fortinet, Inc. FTNT, rose 33.95%. Defense iShares US Aerospace & Defense ETF ITA with exposure to companies such as General Electric GE and RTX Corp. RTX increased 33.86%. Invesco Aerospace & Defense ETF PPA with exposure to companies such as Boeing Co. BA and Lockheed Martin Corp LMT increased by 43.05%. SPDR S&P Aerospace & Defense ETF XAR was up by 34.86%. It gives exposure to Axon Enterprise, Inc. AXN, L3Harris Technologies, Inc. LHX. See Also: Bitcoin, Ethereum, Dogecoin Slingshot To The Moon After Trump Victory But 'Sharp' Correction Might Be In Store: Analyst Views BTC Between $80-90K By End Of Year Why It Matters: The launch of these ETFs by Invesco comes at a time when thematic investing is gaining traction among investors looking to capitalize on specific industry trends. The focus on artificial intelligence, cybersecurity, and defense aligns with growing global interest in these areas, driven by technological advancements and increasing security concerns. Read Next: Cathie Wood's Latest Shake-up: Dumps Palantir And Jack Dorsey's Block Along With Tesla, Buys Amazon And Meta Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Invesco Market News and Data brought to you by Benzinga APIs

Invesco launches ETFs focusing on AI, cyber security and defence

Visit our ETF Hub to find out more and to explore our in-depth data and comparison tools Invesco has bolstered its range of thematic exchange traded funds with the launch of strategies focused on the trends of artificial intelligence, cyber security and defence. The Invesco Artificial Intelligence Enablers, Cybersecurity and Defence Innovation Ucits ETFs follow benchmarks constructed by Kensho, a division of S&P Global Indices with expertise in the application of AI and other technologies. To build the three global indices, Kensho uses natural language processing as an initial screen to identify companies with potential exposure to key concepts associated with each theme. Its analysts further assess each of the companies identified and assign theme exposures accordingly. Eligible companies are divided into "core" and "non-core" companies, the former being those with a "significant portion of their business operations and/or revenues deriving from products and services aligned with the theme", according to Invesco. Companies in the latter category are those operating across the broader value chain of the theme, providing "vital inputs" but not focusing on delivering the end-products themselves. Invesco said the AI enablers strategy would target companies that were focused on "developing and enabling" the technology, infrastructure, and services propelling the growth and functionality of AI. Meanwhile the cyber security ETF would invest in companies that protect "enterprises and devices from unauthorised access via electronic means". The defence-focused fund would offer exposure to companies that were developing "sophisticated weapons, defensive systems and other solutions for securing borders", the asset manager added. The indices for the AI enablers and cyber security themes apply environmental, social and governance screens to remove companies that either are involved in certain controversial business activities, do not comply with the principles of the UN Global Compact or have ESG scores in the bottom 10 per cent of the S&P Global BMI Index. Gary Buxton, head of ETFs for Europe, the Middle East and Africa, and the Asia-Pacific region at Invesco, said the fund group "chose to work with Kensho for their intelligent approach to applying AI but also their expertise in understanding these rapidly evolving new technologies". "Plus, their being part of the S&P Global Index group should provide investors with a higher degree of confidence in the administration. "While the potential of AI has really captured people's imagination, solutions for cyber security and defence are now gaining traction as threats emerge across the globe," he added. According to Chris Mellor, the group's head of ETF equity product management for the Emea region, the trio of launches "stand apart on several key factors". Each ETF has an annual charge of 0.35 per cent.