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Lunate rolls out AI-focused ETF: Abu Dhabi-based investment firm Lunate just launched its second thematic ETF this year, and 20th overall, the AI Data Power ETF, according to a press release (pdf). The fund, set to trade under the ticker AIPOWR, will be listed on the ADX on Tuesday, 25 November, with subscriptions open through the ADX eIPO portal between 10-14 November and will carry a total expense ratio of 49 bps.
The ETF tracks the S&P Transatlantic AI-Related Data Center & Power Supply Infrastructure Index, which includes 35 companies expected to benefit from the build-out of data centers, digital infrastructure, and power systems driving the AI economy. This includes global heavyweights like Google, Amazon, Oracle, NextEra Energy, Siemens, ABB, and Eaton Corp.
Why AI, and why now? The new ETF gives investors exposure to “the backbone of AI, not the developers of algorithms, but the power grids, data centers, and infrastructure enabling it,” Sherif Salem, partner and head of public markets at Lunate, told EnterpriseAM. Governments and private companies are “pouring tns into expanding capacity,” positioning this theme as “the core of the AI economy rather than its fringe.” Investment into AI and power infrastructure is expected to exceed USD 1 tn annually by 2030, said Geir Espeskog, CEO of Northwind, the exclusive advisor to Lunate Capital on ETF strategy.
Background: The company earlier this year launched its first thematic ETF, Solactive Quantum Computing ETF, which hit the ADX in September, and counted as the region’s first thematic ETF tracking an index of 25 global quantum computing firms including Alphabet, Amazon, IBM, Microsoft, and Nvidia. That fund has grown to around USD 10 mn in assets under management (AUM), making it the firm’s fifth-largest ETF by size, and trades roughly AED 1 mn daily, Salem said.
Retail on the rise: While Lunate initially saw institutional investors dominate ETF flows, recent trading activity shows a clear pickup in retail participation, supported by easier access through brokerage platforms and ADX’s eIPO channel, Salem told us.
