Global X has released the first Artificial Intelligence (AI) infrastructure exchange traded fund (ETF) on the Australian Securities Exchange (ASX) today with expectations it will attract $50 million in inflows in its first year.
The new ETF, which carries the ticker code AINF, will offer exposure to companies that provide energy, data centres and raw materials used to scale and power AI.
Global X senior investment strategist Billy Leung said while AI software and semi-conductor giants were household names the rapid adoption of AI across the globe had triggered a demand for the infrastructure behind it.
“These sectors are a vital, but often overlooked, part of the AI value chain,” he stated.
“There’s been significant underinvestment in these areas, creating bottlenecks that investors can now target.”
Leung highlighted the urgent need for infrastructure investment with the global data centre spend forecast to exceed US$2 trillion by 2030 and predicted to consume up to four per cent of the world’s electricity within the next five years.
“A massive infrastructure buildout is underway to sustain AI, and investors now have a way to access this emerging growth engine,” he said.
“AI isn’t just a digital story anymore, it’s a physical one. Massive new infrastructure is needed to power and sustain it.”
Leung anticipated AINF would attract $50 million within its first year, with broader AI ETF flows expected to exceed $80 million.
“As the AI revolution enters its next phase, we believe investors can capture opportunity by looking beyond just tech stocks to the infrastructure enabling it,” he noted.
Global X noted that in Australia, AI-focused ETFs have attracted nearly $90 million in the past 12 months, with $36 million flowing in so far this year, despite broader market volatility.
The AINF offering expands Global X’s range of AI-focused funds to seven alongside its AI, semiconductor, robotics, cybersecurity, uranium and copper miners funds.