Global X unveils Australia’s first AI | Australian Markets

Specialist exchange-traded fund (ETF) supplier Global X has launched a new fund touted as Australia’s first ETF thematic concentrating on industries aligned to the development and growth of artificial intelligence (AI) applied sciences. 

Global X’s Artificial Intelligence Infrastructure ETF (AINF) provides publicity to corporations and adjoining industries, it says, “facilitating the adoption and expansion of AI technologies across the world”.

These corporations – the bodily and operational spine of the AI growth surge – embody information centres, power suppliers, and supplies producers and refiners, akin to these concerned in copper and uranium used to energy and operate AI infrastructure.

“These sectors are a vital, but often overlooked, part of the AI value chain,” stated Billy Leung, senior investment strategist at Global X, noting “significant underinvestment in these areas, creating bottlenecks that investors can now target.”

The AINF has robust weightings within the industrials (43.7%), supplies (22.9%) and knowledge technology (13.6%) sectors.

Among the fund’s present prime holdings embody copper mining teams Antofagasta and Southern Copper, interconnect (fibre optic and coax cable, and so forth.) systems producer Amphenol, and power gear producer GE Vernova.

Leung predicts that the AINF may entice round $50 million in inflows within its first yr, together with a more than $80 million move to its broader suite of AI ETFs.

While current hype round AI has been muted to some degree, few doubt that the technology will play an more and more important position within the international industry within the years to come back, with adjoining industries set to see exponential growth.

A UN Trade and Development (UNCTAD) report revealed earlier this month tasks a 25-fold increase within the international AI market within the last decade from 2023 – from $189 billion to $4.8 trillion by 2033.

Real Estate consultancy Knight Frank predicts international information centre growth will attain US$4 trillion by 2030, accelerated by growing demand for AI and enterprise digital transformation.

It additional forecasts information centre capital expenditure exceeding US$286 billion by 2027 as operators reply to mounting demand for AI-optimised infrastructure, cloud companies, and enterprise digital initiatives.

Citing Goldman Sachs figures, Global X additionally notes a predicted doubling in information centre energy consumption within the following 5 years, consuming up to 4% of the world’s electrical energy.

Meanwhile, it added, key supplies like copper and uranium — essential for servers, cooling systems, and power grids — are likewise experiencing rising demand.

“AI isn’t just a digital story anymore — it’s a physical one. Massive new infrastructure is needed to power and sustain it,” Leung stated.

He added: “As the AI revolution enters its next phase, we believe investors can capture opportunity by looking beyond just tech stocks to the infrastructure enabling it.”

The AINF joins Global X’s current suite of AI thematic ETFs, together with its core Artificial Intelligence (GXAI), Semiconductor (SEMI), General Robotics and Automation (ROBO), Cybersecurity (BUGG), Uranium (ATOM), and Copper Miners (WIRE) funds.

Global X Australia, owned by South Korean investment giant Mirae Asset Financial Group, manages over $10 billion throughout 44 methods.

The AINF attracts a management price of 0.57% every year.