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STOXX launches first global AI index based on AI algorithm

Release date: 22 Jan 2018 | STOXX

STOXX launches first global AI index based on AI algorithm

New index comprises around 200 constituents / AI selects stocks autonomously / New website: www.stoxx.ai

Frankfurt, Zurich (22 January 2018) – Today, STOXX Ltd., the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, introduced the world’s first index that uses AI-related algorithms to select companies exposed to the artificial intelligence (AI) megatrend at the Inside ETFs conference in the U.S. The new index will be available as of tomorrow, 23 January 2018.

The STOXX® AI Global Artificial Intelligence Index comprises around 200 companies from a wide range of industries that invest heavily in the development of new AI technologies such as technology, telecommunications, finance, and internet services. These companies are considered ‘digital pioneers’ that are well-positioned to benefit from the increased adoption of AI technologies, among them Apple, Deutsche Telekom, Bank of America and Facebook.

The new STOXX AI index selects its constituents by using artificial intelligence technology, and it is the first thematic index to do so. For the selection of the index constituents, STOXX has partnered with Yewno, an award-winning AI company based in Silicon Valley, which applied its knowledge graph technology to assess companies’ intellectual property (IP). The key criterion used in the selection process is the identification of patent filings related to AI, which can indicate leading AI innovators as well as AI adopters. The underlying universe for the index composition is the STOXX Developed and Emerging Markets Total Market Index, which tracks around 7,000 stocks.

“We are proud to be a partner of STOXX for the launch of the AI index. Our underlying knowledge graph and AI technology screens a large volume of structured and unstructured data such as official filings and patents in order to detect companies that are investing in AI-related technologies and research. The core intelligent framework behind Yewno’s technology leverages advanced techniques typically applied within the fields of complex systems, computational linguistics and AI, and provides a unique platform to readily generate intelligent signals such as data packages, indices, and advanced analytics,” explained Ruggero Gramatica, CEO Yewno Inc.

“The explosion of data collection fueled the advance of AI. Today’s early adopters are set to be tomorrow’s AI leaders,” said Matteo Andreetto, CEO of STOXX. “AI technologies present an unrivalled investment opportunity, yet investors need solutions to discern hype from a real opportunity. With our two new transparent, rules-based AI indices for AI-focused investors we offer them choice: on the one hand, a classical, revenue-based approach; on the other hand, a progressive, AI IP-based approach, where an AI algorithm is used in the selection of companies. The latter index is a digital disruption in itself, as it is the first-ever AI index based on AI.”

In addition to the innovative AI index based on AI, STOXX also launched the STOXX® Global Artificial Intelligence Index today, which includes companies with a revenue exposure above 50% to AI-related sectors.

More details can be found here: www.stoxx.ai

Company selection of the STOXX AI Global Artificial Intelligence Index is based on two measures:

AI IP contribution:

  • This measure indicates the percentage of total AI patents registered to a company vs. the total number of AI patents registered globally over the same period.
  • It indicates the significance of each company in the AI space.

AI IP exposure:

  • This measure indicates the percentage of total AI-related patents granted to a company vs. the total number of patents registered to the same company over the same period.
  • It indicates the significance of AI-related IP in the company’s overall IP portfolio.

 

The STOXX AI Global Artificial Intelligence Index includes only those companies that belong to the top three quartiles in both dimensions. The final selection of components is subsequently equal-weighted. The index composition is reviewed on a quarterly basis.

About STOXX Limited

STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 7,500 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets.

 

To provide market participants with optimal transparency, STOXX indices are classified into three categories. Regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global index family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name.

STOXX indices are licensed to more than 500 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and approximately 25% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world's number two position in the derivatives segment.

STOXX is part of Deutsche Boerse Group, and also markets the DAX indices. www.stoxx.com

 

About Yewno

Founded in 2014, Yewno is helping the world to uncover the undiscovered through its new inference engine, which introduces an entirely new approach to knowledge discovery.  Mimicking the human brain, the Yewno inference engine incorporates machine learning, cognitive science, neural networks, and computational linguistics into an intelligent framework to enhance human understanding by correlating concepts across vast volumes sources. Headquartered in Redwood City, CA, and with offices in London and New York, Yewno is backed by leading investors including Pacific Capital and currently has numerous partnerships across top research universities, publishers, the finance sector and content aggregators worldwide.  Yewno was recently named Outsell’s 2017 Emerging Company of the Year, and was chosen from among 250 major disruptors in the global information industry.

For more information, visit www.yewno.com

 

STOXX, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Deutsche Boerse Group or their licensors, research partners or data providers.

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