Large volumes of company reports, financial news and social media data are analyzed to identify meaningful exposures of companies to certain themes.
Natural Language Processing
Our natural language processing algorithm reveals relationships between keywords that describe a theme and companies that are active in this very field - relationships that would not be captured by traditional sector classifications.
Using our knowledge in indexing, we can utilize those relationships and create indices that provide thematic exposure while meeting highest quality standards.
We are always looking into current trends and are working on new thematic investment ideas that can be wrapped into an index.
Our newest innovation in the field of big data and natural language processing is ARTIS® (Algorithmic Theme Identification System). ARTIS® is a proprietary software tool to identify thematic exposures in companies using unconventional data sources. The traditional approach of using a one-dimensional sector classification is limited in cases where companies are involved in many markets and offer various product lines. ARTIS® functions as a multidimensional classification that generates a deeper understanding of the products and services a company offers.
Exemplary Investment Themes
China Domestic Consumption
The Solactive China Consumer Index intends to track the price movements of the 20 largest companies according to market capitalization that are classified in any of the three following sectors – Consumer Services, Consumer Durables and Consumer Non-Durables – and furthermore derive more than 75 per cent of their revenues from China.
The connected industry is the next step after mass production and digitalization of the manufacturing processes that promises a leap step in productivity. The Solactive Global Industry 4.0 Index is investing into companies that develop technologies and services that facilitate this new industrial revolution.
The resources on our planet are limited, our cities are congested. The Solactive Sharing Economy Index gives the investor exposure to leaders in the private home rental, car sharing, co-working and peer-2-peer lending spaces through direct and indirect investment.