NEW YORK, Feb. 13, 2018 /PRNewswire/ -- Innovation
Shares LLC, a sponsor of unique thematic Exchange Traded Funds, is
today announcing the launch of the Innovation Shares NextGen
Vehicles & Technology ETF (NYSE Arca: EKAR), the first
artificial intelligence (AI) driven ETF to provide investors with
exposure to the universe of stocks involved in the growing
categories of electric and self-driving/autonomous vehicles.
"The auto industry is poised to undergo a dramatic shift away
from internal combustion engines to electric batteries. Meanwhile,
the adoption of autonomous vehicles is being supported in numerous
countries by a growing trend towards shared mobility and
'mobility-as-a-service,' as well as rapid technological
advancements and an evolving regulatory environment," said
Matt Markiewicz, Managing Director
with Innovation Shares. "These trends are likely to upend not only
the auto industry, but also the transportation of goods and people.
EKAR is designed to provide a way for investors to participate in
these rapidly emerging industries."
EKAR tracks an index designed to give investors exposure to a
global basket of stocks that are closely involved in the growth of
these markets, placing index constituents in one of four categories
based on relevance: 1. Battery Producers; 2. Original Equipment
Manufacturers (OEMs); 3. Suppliers; and 4. Semiconductors &
Software.
The index underlying EKAR was constructed utilizing a
patent-pending natural language processing algorithm that screens
for global stocks that are believed to have a current or future
economic interest in the growth of electric and autonomous
vehicles. Recent estimates have found that autonomous driving
technology could represent a $7
trillion global growth opportunity by 2050, dramatically
altering the way goods are shipped, and the ways in which people
travel and consume goods and services.1
"Through the use of textual analysis and artificial
intelligence, our approach is able to identify key companies that
might otherwise not be identified by traditional analytical
research," continued Markiewicz. "As with KOIN, we believe that
innovative themes are best captured by innovative approaches to
indexing, and that's exactly what we're bringing to investors with
EKAR."
KOIN, the Innovation Shares NextGen Protocol ETF, began trading
on January 30th and uses
the same natural language processing approach in its underlying
index to identify companies driving and benefiting from the growing
use of blockchain technology.
Both KOIN and EKAR trade on the NYSE Arca with management fees
of 65 basis points, respectively.
The four categories that make up EKAR's underlying index are
defined as follows:
- Battery Producers: Companies that mine or produce
materials, chemicals, and components that are used in the
production of batteries.
- Original Equipment Manufacturers (OEMs): Companies that
design, manufacture and/or distribute New Energy Vehicles (NEVs)
and Autonomously Driven Vehicles (ADVs).
- Suppliers: Companies that produce or distribute parts
and components used in NEVs and ADVs. This may include but not
limited to thermal management (heating/cooling) systems &
drive-train elements (other than batteries).
- Semiconductors & Software: Companies that produce
semiconductors & software used in NEVs and ADVs including but
not limited to advanced driver-assistance systems (ADAS), Light
Detection & Ranging (LiDAR) and infotainment. Companies that
develop software necessary for sensing, mapping and providing
driving policy within NEVs and ADVs.
Exchange Traded Concepts serves as the advisor for KOIN and
EKAR.
About Innovation Shares LLC
Innovation Shares focuses
on themes that investors are talking about but have a hard time
accessing. The real innovation behind its strategy is the AI
powered natural language processing algorithm used to select
stocks, which was developed at one of the world's largest
quantitative hedge funds. By harnessing the potential of textual
analysis, companies are identified that might otherwise be
overlooked by traditional analytical research.
About Exchange Traded Concepts
Exchange Traded
Concepts (ETC) is an exchange-traded fund (ETF) provider that
creates white label ETFs for index providers and asset managers
around the world through a complete turnkey solution. ETC's
ETF-In-A-Box™ Solution provides an efficient and
cost-effective method to bring exchange-traded funds to market with
the operational and regulatory experience necessary to manage the
complexities of launching and managing an ETF.
Carefully consider the Fund's investment objectives, risk
factors, charges and expenses before investing. This and additional
information can be found in the Fund's prospectus, which may be
obtained by visiting innovationshares.com. Investors should read it
carefully before investing or sending money.
Investing involves risk, including possible loss of principal.
International investments may also involve risk from unfavorable
fluctuations in currency values, differences in generally accepted
accounting principles, and from economic or political instability.
Emerging markets involve heightened risks related to the same
factors as well as increased volatility and lower trading volume.
Narrowly focused investments and investments in smaller companies
typically exhibit higher volatility. There is no guarantee the fund
will achieve its stated objective.
Currently, there are few public companies for which Blockchain
technology represents an attributable and significant revenue
stream. The Fund may be more susceptible to potential
operational risks through breaches in cyber security. Investments
in blockchain companies are subject to: theft, loss, or
destruction; competing platforms and technologies; developmental
risk; cybersecurity risk; intellectual property claims; lack of
regulation or liquid markets, and possible manipulation of
blockchain-based assets; and third party product defects or
vulnerabilities.
Next Generation Vehicles are a relatively new development and
there can be no assurance that they will be widely adopted by the
general public. Companies may be subject to risks related to rapid
changes in technology, worldwide competition, rapid obsolescence of
products and services, loss of patent protections, evolving
industry standards and frequent new product productions, and
changes in business cycles and government regulation.
ETF Shares are bought and sold at market price, not net asset
value (NAV), and are not individually redeemed from the Fund.
Exchange Traded Concepts, LLC serves as the investment advisor,
and Penserra Capital Management LLC serves as the sub-advisor to
the fund. The Funds are distributed by SEI Investments Distribution
Co. (1 Freedom Valley Drive, Oaks,
PA, 19456), which is not affiliated with Exchange Traded
Concepts, LLC or any of its affiliates.
1 Source: Intel and Strategy Analytics, "Accelerating
the Future: The Economic Impact of the Emerging Passenger Economy."
June 2017.
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SOURCE Innovation Shares LLC