\u201cWho will win the AI race?\u201d That is the question racking the brains of investors around the world. Usually they focus on software companies. Swissquote sees an analogy with skiing, where most people would be interested in who was going to win the next downhill race. Rather than placing such bets, however, the direct broker\u2019s strategists reckon it would be more useful to focus on the fundamentals of the ski resorts. What chairlifts, gondolas and mulled wind stands are to mountains, so data centres and energy suppliers are to the field of artificial intelligence (AI). They are what keep this mega-trend going, regardless of who ultimately delivers the best applications. <\/p>\n\n
That is precisely where the new Swissquote AI Infrastructure Index comes in. \u201cInstead of backing volatile software start-ups, this theme invests in companies that deliver the infrastructure and energy projects which make the very existence of these start-ups possible in the first place,\u201d is how the initiators explain their idea. Indeed, AI is a real power hog. The International Energy Agency (IEA) anticipates that the electricity demand of data centres worldwide will more than double to around 945 terawatt hours by 2030. As usual, Swissquote leaves nothing to chance when it comes to selecting the companies. To even be considered for inclusion in the AI Infrastructure Index, a share must first meet two quantitative criteria: alongside a market capitalisation of at least CHFmn 100, these include an average daily trading volume of around CHF 100,000. In qualitative terms, the index is focused on the vital backbone of the digital economy. The crucial physical level of the AI value chain covers power distribution, liquid cooling and carbon-neutral energy generation. The number of components can vary between 10 and 60. Dividends of the shares included are considered on a net basis. <\/p>\n\n
The Swissquote AI Infrastructure Index currently contains 25 companies, with ABB leading the alphabetical list. As a specialist for electrification, automation and drive technology, the Zurich-based industrial group is a perfect match. This is clear from an order recently received by the SMI member, under which ABB will support Texan microgrid provider VoltaGrid in worldwide projects supplying power to data centres. The order includes the delivery of 35 synchronous condensers featuring flywheel technology. These ABB systems work as a kind of shock absorber for the electricity grid, ensuring the stability that is particularly needed for the expansion of AI. The Swissquote AI Infrastructure Index is dominated by US companies, which make up around half the selection in total. Power supplier NextEra Energy is also included, as is turbine specialist GE Vernova and Vertiv. The last of these describes itself as a leading provider of critical digital infrastructure for applications in data centres, communication networks and commercial and industrial environments. This business model is finding fans on Wall Street: Vertiv\u2019s shares are trading at an all-time high.<\/p>\n\n
Leonteq is enabling investment in this exciting investment idea through a tracker certificate. The participation product tracks the Swissquote AI Infrastructure Index without any term limit. The listing on the SIX Swiss Exchange gives investors complete flexibility: they can now buy and sell the product during the extended trading hours of 8.00am to 9:45pm each trading day. The management fee is 0.40% p.a., and a calculation agent fee of 0.20% p.a. is also levied. For these charges investors can invest across a wide range of core AI components, deliberately avoiding the competition between many companies for the best applications. \u201cThis is a simple and intelligent way to profit from a sector that is still largely unknown, but is guaranteed to shape our future,\u201d say the Swisssquote experts, summarising the strategy behind the new index.<\/p>\n\n\n
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11<\/a>, email info@leonteq.com<\/a> or contact us here<\/a>.\n<\/p>\n <\/div>","url":"swissquote-ai-infrastructure-index","investmentThemeVerticalImageUrl":"https://structuredproducts-ch.leonteq.com/product-news/sidenav-banner/ai-infrastructure_leonteq-structured-productssidenav+banner.jpg","thumbnailUrl":"https://structuredproducts-ch.leonteq.com/product-news/thumbnail/ai-infrastructure_leonteq-structured-productsthumbnail.jpg"}