Investing in Providers of Global Data Infrastructure with Global X’s New Data Center REITs & Digital Infrastructure ETF
According to Cisco’s Annual Internet Report, 66 percent of the world’s population (5.3 billion people) will have access to the internet by 2023. This staggering amount of data produced requires an efficient global data infrastructure, a demand, which created a whole industry of companies specialized in building and operating large data centers that process society’s digital life. To enable investors to access Data Centers straightforwardly, Global X launched an ETF incorporating large-scale Data Center and digital infrastructure players in their new Global X Data Center REITs & Digital Infrastructure ETF [Ticker: VPN], tracking an ARTIS®-based Solactive index.
Solactive incorporated key Data Center REIT operators as well as industry-related players providing data infrastructure in one index, the Solactive Data Center REITs & Digital Infrastructure Index. Index constituents are selected via Solactive’s proprietary natural language processing algorithm ARTIS®.
ARTIS® utilizes advanced algorithms to parse high volumes of public documents evaluating companies’ exposure to various themes or topics and the firm’s corresponding relevance inside these very fields. Companies eligible for index inclusion need to generate at least 50% of their revenues from data center and/or cellular tower related business operations. This selection may include companies that own, operate, and or develop data centers (including data center REITs), cellular towers (including cellular tower REITs), or manufacturers of servers and/or other hardware often used in data centers and cellular towers, including semiconductors, integrated circuits, and processors.
“Data centers existed long before I had the pleasure to listen to my old 56K modem’s serenade, and, today, play a significant role in our every-day life,” comments Timo Pfeiffer, Chief Markets Officer at Solactive. “As investors progressively want to diversify their portfolios, Global X’s Data Center REITs & Digital Infrastructure ETF eschews traditional brick-and-mortar real estate investments for a contemporary approach that plays on the increasing demand for digital infrastructure. We are happy to work with Global X and serve as their partner to make innovative ideas publicly investible once again.”
The Global X’s Data Center REITs & Digital Infrastructure ETF started trading on the 29th of October on Nasdaq.