Transcript

Hi, My name is Derek Yan, Senior Investment Strategist with KraneShares. Today we're going to talk about KraneShares Artificial Intelligence and Technology ETF, AGIX.

The Arrival of the AI Revolution

Artificial intelligence is transforming global industries today; from Customer Service to Healthcare and Financials. Companies like Nvidia and ChatGPT are really leading the charge. ChatGPT is now the fastest app to reach 100 million users in just two months, and Nvidia’s stock price hit an all-time high, but this is just the beginning.

Generative AI could add trillions of dollars of value to the global economy according to McKinsey in the next few years. We're now just seeing the tip of the iceberg, mainly through Magnificent Seven stocks.

AGIX and the Aritifical Intelligence Ecosystem

We believe there are opportunities beyond Mag Seven. Investors should consider the three layers of the AI Ecosystem. First, you have the AI Hardware where companies manufacture and design chips like GPUs, provide cooling and power for the data center. With those hardware, then companies can build the AI Infrastructure layer, where companies provide services like cloud data management and cybersecurity for the AI models. Then with the infrastructure, you can create the AI native applications and the software can really empower enterprises and customers to save costs, gain productivity, and improve the customer experience. AGIX currently has a 40/40/20 allocation into the AI Hardware, Infrastructure, and Application.

KraneShares Artificial Intelligence and Technology ETF AGIX is designed to invest in the AI Ecosystem that captures the full AI value chain.

A New Artificial Intelligence ETF

Starting from over 2000 companies. We have a framework to narrow down the portfolio to 40 to 50 companies that are AI-ready and AI-relevant. AGIX uses a unique AI-score to evaluate the relevance and readiness of a company. It considers factors like how much is the AI revenue, the visibility of the AI revenue, the evolution of the AI product, and how AI is going to disrupt its business model.

Only a small percentage of companies meet our standards for AI readiness and relevance. AGIX targets to capture the current AI leaders and the potential AI winners.

The AI landscape is very dynamic. Our quarterly index review aims to make our holdings reflect the latest change in the AI revolution.

To get your portfolio AI-ready, please visit KraneShares.com/AGIX for more information.

Thanks for watching.

For AGIX standard performance, top 10 holdings, risks, and other fund information, please click here.

This material contains Derek Yan's opinion. It should not be regarded as investment advice or a recommendation of specific securities.

Holdings are subject to change. Securities mentioned do not make up the entire portfolio and, in the aggregate, may represent a small percentage of the fund.