Invesco has announced it is launching three thematic ETFs, aiming to provide investors targeted access to the long-term trends of artificial intelligence (AI), cybersecurity, and defence.

Each of the ETFs will follow global benchmarks constructed by Kensho, the specialist branch of S&P Global Indices.

The Invesco AI Enablers UCITS ETF will target companies that are focused on developing and enabling the technology, infrastructure, and services propelling the growth and functionality of AI.

Its second ETF, the Invesco Cybersecurity UCITS ETF, will target companies that are focused on protecting enterprises and devices from unauthorised access via electronic means.

Finally, Invesco’s Defence Innovation UCITS ETF will target companies that are developing sophisticated weapons, defensive systems and other solutions for securing borders.

“While the potential of AI has really captured people’s imagination, solutions for cybersecurity and defence are now gaining traction as threats emerge across the globe,” Invesco head of EMEA and APAC ETFs, Gary Buxton.

“For investors, the question is how best to capture these opportunities today and into the future. We 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.”

Each index is constructed from a global universe of stocks, with Kensho using natural language processing as an initial screen to identify companies with potential exposure to key concepts associated with each theme.

Kensho’s analysts further assess each of the companies identified and assign theme exposures accordingly.

The indices for the AI enablers and cybersecurity themes apply ESG screens to remove companies that either are involved in certain controversial business activities, do not comply with the principles of the United Nations Global Compact, or have ESG scores that fall into the bottom 10 per cent of the S&P Global BMI Index.

“Our new thematic ETFs stand apart on several key factors,” said Invesco head of EMEA ETF equity product management, Chris Mellor.

“First is on cost. At 0.35 per cetn per annum, they each have the lowest – or joint lowest – annual charges among competing products. Second is on the expertise of the index provider. Finally, our ETFs emphasise those companies most involved and capable of making the greatest impact for investors.”

These three new ETFs expand Invesco’s thematic offerings, which include ETFs targeting global blockchain, biotech, and clean energy technologies.

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