Cboe’s 3 Questions in 3 Minutes: WTAI
Kara Marciscano, Research Associate at WisdomTree answers the following three questions about the WisdomTree Artificial Intelligence and Innovation fund, ticker WTAI:
- What is the WisdomTree Artificial Intelligence and Innovation fund?
- Why now?
- How can WTAI fit into a portfolio?
What is the WisdomTree Artificial Intelligence and Innovation fund?
Hi everyone, I'm Kara Marciscano, Research Associate at WisdomTree. Today we'll be discussing the WisdomTree Artificial Intelligence and Innovation fund, ticker WTAI. The fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Artificial Intelligence & Innovation Index. The index consists of companies involved in targeted artificial intelligence activities, such as semiconductors and AI software to name a couple.
You might be wondering why now? Well, artificial intelligence, known as “AI”, is an exciting area of technology that has the potential to change how industries operate and how consumers live their lives. From self-driving cars to security and fraud protection, artificial intelligence provides limitless possibilities and, in the years ahead, there are likely to be many ways to profit from the technology. Investment and adoption of AI is on the rise across many industries.
[Image displayed on screen] As you can see, here at WisdomTree, we believe the exponential growth in technological innovations can be best explained by synergies within the AI value chain. Specifically, as semiconductors become more optimized for data, and the cloud enables more scalable computing, AI can learn from more data, faster and at cheaper costs. As this happens, time-to-market for research breakthroughs and new industry applications are reduced, resulting in the major advancements we've seen in AI over the last 5 to 10 years, and will continue to see in the years to come.
So, how does WTAI fit into a portfolio? Well, here at WisdomTree, we aim to provide unique and differentiated options for exposures, in this case AI. We also understand that many investors are already familiar with AI and have various options should they want to include this exposure in their portfolio. Therefore, WisdomTree sought to create a more flexible and comprehensive approach to the AI investment process, focused on an appropriate mix of quantitative and qualitative research. [Image displayed on screen] As you can see, the WisdomTree Artificial Intelligence &Innovation Index (WAII) identifies companies that are involved in targeted AI subthemes within the key areas of the AI value chain. To summarize, our selection committee focuses on the specific functionality that each constituent is contributing to the development and deployment of AI, which provides precise access to this megatrend. The constituents identified are then ranked and weighted to determine the final allocation within the Index and would be rebalanced semi-annually. Overall, with diversified exposure to what we believe to be fastest growing and most exciting opportunities in the AI value chain, WTAI can be an option within a portfolio’s growth allocation.
Before investing, carefully consider a Fund’s investment objective, risk, charges and expenses contained in the prospectus available on WisdomTree.com. Read carefully.
Artificial Intelligence: machine analysis and decision-making.
Yield: The income return on an investment. Refers to the interest or dividends received from a security that is typically expressed annually as a percentage of the market or face value.
Kara Marciscano is a registered representative of Foreside Fund Services, LLC.