Legal and General Investment Management (LGIM) has launched a range of three Exchange Traded Funds (ETFs) to invest passively in innovative technology companies.
The L&G Artificial Intelligence Ucits ETF will invest in stocks in the artificial intelligence space globally, both in terms of companies that are creating AI solutions and those that are applying existing solutions within other industries.
The L&G Healthcare Breakthrough Ucits ETF will invest in companies in the healthcare supply chain and those developing diagnostics solutions, while the L&G Clean Water Ucits ETF will invest in companies that are engaged in water provision.
Legal and General has worked with Robo Global to create specific indices for these funds to track.
The ETFs will be listed on the London Stock Exchange.
Howie Li, head of ETFs at Legal and General said: "All sectors and businesses are being transformed by disruptive technology and we’re seeing increasing demand from investors looking to access these themes in a cost-efficient way.
"These new funds offer investors the opportunity to hold companies directly benefiting from these themes, with bespoke indices constructed around active selection and research and implemented in a systematic and rules-based way."
Patrick Connolly, head of communications at advice firm Chase De Vere, said: "LGIM are one of the market leaders in passive investing and with these new launches they are offering investors relatively low-cost access to some of the key themes of the future.
"However, while there is strong growth potential in each of these dynamic themes, the funds are likely to be volatile as new competitors will continually challenge, and potentially replace, the incumbent companies.
"These funds will therefore not be suitable for most investors and, where they are used, it should only be for small proportions of a portfolio."
david.thorpe@ft.com
