Canada-based Horizons ETFs Management has launched the Horizons Industry 4.0 Index ETF, which it calls “FOUR”.
Horizons says FOUR is a new-technology-focused exchange-traded fund that seeks to invest in sectors that are crucial to the development of the Fourth Industrial Revolution, or “Industry 4.0”.
Units of the ETF will begin trading today on the Toronto Stock Exchange under the ticker symbol FOUR.
FOUR seeks to replicate, to the extent possible, the performance of the Solactive Industry 4.0 Index, net of expenses.
The Index is designed to provide exposure to the performance of companies that are advancing Industry 4.0 – the merging of the physical and digital worlds amid the newest phase of industrialization.
This includes the following technologies:
1. Advanced Robotics:
» Two key areas include:
- Robotics and Automation: Companies involved in the design, creation and application of mechanical devices that can perform tasks and interact with their environments without human interaction.
- Artificial Intelligence: Companies that are involved in developing applications, technologies and products that utilize AI for data analysis, predictive analytics, task automation and other applications.
2. The Internet of Things: A growing network of connected devices and objects that use network-enabled sensors, chips and processors to interact with other devices on a network.
3. Cloud and Big Data: Builds the foundation of Industry 4.0 and allows real-time communications for production systems, as well as real-time decision-making support and optimization.
4. Cyber-security: Online and digital solutions to protect proprietary data and client information will be absolutely vital to the success of Industry 4.0 initiatives.
5. Augmented Reality and 3D Printing: With 3D Printing, the fabrication of components becomes much more flexible, cost-effective and can be distributed on-demand. Augmented Reality can speed-up the production chain and reduce maintenance costs.
“With the continued increase in computer processing power and more and more use of transformative technologies such as AI, I believe we are embarking on one of the most revolutionary periods of technological change – Industry 4.0,” said Steve Hawkins, President and CEO of Horizons ETFs.
“FOUR seeks to provide broad global exposure to companies leading the charge in the five key sectors associated with Industry 4.0.”
Index inclusion requirements include listing on a regulated stock exchange limited to 23 developed countries, a minimum market capitalization of $200 million, and a minimum average daily trade value of $2 million over one-month and over six-month periods prior to and including the selection day. Each of the five Index categories and their individual components are weighted equally.
“FOUR is our latest offering that gives investors broad exposure to the rise of emerging technologies, through our leading line-up of thematic ETFs,” said Hawkins.
“From Canada’s first global robotics equity ETF, RBOT, to our blockchain-ecosystem ETF, BKCH, to the world’s first AI-driven global equity ETF, MIND, Horizons ETFs is committed to providing investors with a way to invest in the technologies accelerating Industry 4.0 – and now, they can access it all through FOUR.”
FOUR has closed its initial offering of units and will begin trading today on the TSX.