Legal & General Investment Management (LGIM) has expanded its range of thematic exchange traded funds (ETFs) with the launch of three new funds capturing the investment opportunities created by innovations in artificial intelligence, healthcare breakthroughs and clean water.
2 Jul 2019
The ETFs are designed to invest in markets that are experiencing the potential for rapid growth due to significant changes driven by technological advancements, providing investors with access to pioneering companies that are creating solutions to longstanding challenges.
To provide investors with exposure to these themes, LGIM has developed unique indices through active research into these markets with industry experts at ROBO Global® and Global Water Intelligence, who provide unique industry insight and fundamental research across the full value chain of the relevant theme.
These new ETFs, which are listed on the London Stock Exchange provide diversification across geographies, market capitalisation and sub sectors. Each of the funds uses full physical replication to offer investors direct and pure exposure to the theme. The bottom-up and concentrated approach helps investors to minimise overlap and over-exposure across their existing portfolios: for example, across LGIM’s five pre-existing thematic thematic ETFs, the average overlap in holdings with the MSCI World index is just 1.92% and the average weighting to small and mid-caps is 56%.
Howie Li, Head of ETFs at LGIM: "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."