
Emphasising strong fundamentals for long-term investment success
Figure 1: Sector Breakdown of FTCE
Table 1: Top 10 holdings of FTCE
|
Rank |
Holding Name |
Sector |
Net Assets (%) |
|
1 |
NVIDIA Corp |
Information Technology |
5.32 |
|
2 |
Broadcom Inc |
Information Technology |
4.61 |
|
3 |
Meta Platforms Inc |
Communication Services |
4.43 |
|
4 |
Ford Motor Co |
Consumer Discretionary |
3.97 |
|
5 |
Oracle Corp |
Information Technology |
3.57 |
|
6 |
Yum! Brands Inc |
Consumer Discretionary |
3.45 |
|
7 |
Eli Lilly & Co |
Health Care |
2.97 |
|
8 |
Accenture PLC |
Information Technology |
2.72 |
|
9 |
Adobe Inc |
Information Technology |
2.72 |
|
10 |
Verizon Communications Inc |
Communication Services |
2.70 |
|
|
Total |
36.45 |
|
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
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Table 2: Comparison against other peers
|
Name of ETF |
Expense Ratio (%) |
AUM (USD mil) |
Average Daily Volume (‘000) |
Inception Date |
|
First Trust New Constructs Core Earnings Leaders ETF (NYSE: FTCE) |
0.60 |
39.1 |
85.2 |
3 Oct 2024 |
|
JPMorgan U.S. Quality Factor ETF (NYSE: JQUA) |
0.12 |
5,095 |
456.3 |
9 Nov 2017 |
|
Fidelity Quality Factor ETF (NYSE: FQAL) |
0.15 |
1,082 |
29.3 |
15 Sep 2016 |
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
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Reduce concentration risk in the Magnificent 7 with this ETF
Figure 2: Sector Breakdown of XMAG
Table 3: Top 10 holdings of XMAG
|
Rank |
Holding Name |
Sector |
Net Assets (%) |
|
1 |
Broadcom Inc |
Information Technology |
2.31 |
|
2 |
Eli Lilly & Co |
Health Care |
1.97 |
|
3 |
JPMorgan Chase & Co |
Financials |
1.84 |
|
4 |
Berkshire Hathaway Inc |
Financials |
1.72 |
|
5 |
Exxon Mobil Corp |
Energy |
1.54 |
|
6 |
UnitedHealth Group Inc |
Health Care |
1.50 |
|
7 |
Visa Inc |
Financials |
1.43 |
|
8 |
Mastercard Inc |
Financials |
1.23 |
|
9 |
Procter & Gamble Co |
Consumer Staples |
1.14 |
|
10 |
Home Depot Inc |
Communication Services |
1.14 |
|
|
Total |
15.84 |
|
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
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Table 4: Comparison against other peers
|
Name of ETF |
Expense Ratio (%) |
AUM (USD mil) |
Average Daily Volume (‘000) |
Inception Date |
|
Defiance Large Cap Ex-Magnificent Seven ETF (NASDAQ: XMAG) |
0.35 |
6.4 |
48.1 |
21 Oct 2024 |
|
Invesco S&P 500® Equal Weight ETF (NYSE: RSP) |
70,096 |
5457 |
30 April 2003 |
|
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
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BlackRock unveils new AI ETF amid the AI boom
While artificial intelligence (AI) has been around for decades, its prominence surged with the launch of ChatGPT in 2022. Generative AI has sparked widespread interests in AI’s potential, accelerating adoption across both consumers and businesses. This shift is not limited to generative AI, as other forms of AI including machine learning and automation, are also experiencing broader integration across industries. According to the International Data Corporation, global expenditure on AI is expected to double by 2028, reaching USD 623 billion.
The iShares A.I. Innovation and Tech Active ETF (NYSE: BAI) was launched on 22 October 2024 to capitalise on the AI revolution, which many believe is still in its early stages. BAI is an actively managed fund that seeks to maximise total returns by investing in a concentrated portfolio of 20 to 40 global AI and technology stocks across all market capitalizations. It targets companies across the AI stack, including infrastructure (cloud infrastructure, accelerated computing, power), intelligence (AI models, data), and apps and services (services and solutions, data software and tools, applications)
As of 8 November 2024, BAI primarily invests in US-domiciled companies (82.33%), with small allocations to other countries such as Taiwan (6.02%), Germany (2.41%) and Japan (2.23%). Sector-wise, holdings are heavily concentrated in Information Technology (70.95%), along with a notable 12.33% allocation in Communication Services.
Among BAI’s 34 holdings, the top three are NVIDIA Corp (11.59%), Microsoft Corp (8.39%) and Meta Platforms Inc (5.00%).
Figure 3: Geographical Exposure of BAI
Figure 4: Sectoral Breakdown of BAI
Table 5: Top 10 holdings of BAI
|
Rank |
Holding Name |
Sector |
Country |
Net Assets (%) |
|
NVIDIA Corp |
Information Technology |
US |
11.59 |
|
|
2 |
Microsoft Corp |
Information Technology |
US |
8.39 |
|
3 |
Meta Platforms Inc |
Communication Services |
US |
5.00 |
|
4 |
Broadcom Inc |
Information Technology |
US |
4.19 |
|
5 |
Astera Labs Inc |
Information Technology |
US |
4.15 |
|
6 |
Taiwan Semiconductor Manufacturing |
Information Technology |
Taiwan |
4.12 |
|
7 |
Amazon.com Inc |
Consumer Discretionary |
US |
3.79 |
|
8 |
Oracle Corp |
Information Technology |
US |
3.41 |
|
9 |
Cadence Design Systems Inc |
Information Technology |
US |
3.31 |
|
10 |
ServiceNow Inc |
Information Technology |
US |
2.43 |
|
|
Total |
|
50.38 |
|
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
||||
Table 6: Comparison against other peers
|
Name of ETF |
Expense Ratio (%) |
AUM (USD mil) |
Average Daily Volume (‘000) |
Inception Date |
|
iShares A.I. Innovation and Tech Active ETF (NYSE: BAI) |
0.55 |
20.2 |
68.8 |
22 Oct 2024 |
|
Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) |
0.68 |
2,274 |
279.7 |
15 May 2018 |
|
Robo Global® Artificial Intelligence ETF (NYSE: THNQ) |
0.68 |
138.7 |
11.7 |
7 May 2020 |
|
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 7 November 2024 |
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