The firm’s new ETF focuses on new-technology sectors that merge the physical and digital worlds
Continuing with the broad trend of ETFs that focus on technological themes, Horizons ETFs has launched its Horizons Industry 4.0 Index ETF. Investing in sectors that are crucial to the fourth industrial revolution, the fund is currently trading on the TSX under the ticker symbol FOUR.
“With the continued increase in computer processing power and more and more use of transformative technologies such as A.I., I believe we are embarking on one of the most revolutionary periods of technological change – Industry 4.0," said Steve Hawkins, president and CEO of Horizons ETFs.
FOUR seeks to replicate the performance of the Solactive Industry 4.0 Index, net of expenses and to the extent possible. The index is designed to provide exposure to companies that are advancing the merging of physical and digital worlds amid the newest phase of industrialization.
The fund’s index targets five categories:
- Advanced robotics – aside from covering companies involved in robotics and automation, there’s also a focus on companies involved in developing AI-powered applications, technologies, and products for data analysis, productive analytics, and task automation
- The “Internet of Things” – companies that invest in the growing interconnectivity of devices and objects that use network-enabled sensors, chips, and processors
- The cloud and big data – builds the foundation of Industry 4.0 and drives real-time team communication, decision-making support, and optimization
- Cyber-security – online and digital solutions that protect proprietary data as well as client information
- Augmented reality and 3D Printing – the two technologies represent opportunities for reduced maintenance expenses, faster production chains, and flexible fabrication processes that are cost-effective
To be included in the index, companies must be listed on a regulated stock exchange limited to 23 developed countries, have a minimum market capitalization of US$200 million, and a minimum average daily trade value of US$2 million over one- and six-month periods prior to and including the selection day. Each of the fund’s five index categories, as well as their individual components, are weighted equally.
“FOUR is our latest offering that gives investors broad exposure to the rise of emerging technologies, through our leading line-up of thematic ETFs,” Hawkins said, citing the firm’s RBOT, BKCH, and MIND ETFs.
