Digital health and cybersecurity
FDA prioritizes medical device safety
The Food and Drug Administration (FDA) has updated regulations and guidelines for approval of medical devices. Among the changes, medical device manufacturers will be required to provide more documentation of the cybersecurity measures implemented to protect their devices and contingency plans to address potential vulnerabilities. .1 The FDA also has a new patch protocol for medical devices requiring software bills of materials to document the components and libraries used in device software.2 These updated guidelines apply to new applications submitted after March 29, 2023. Applications submitted before March 29th will continue to follow the previous guidelines until October 1st, 2023.3
The FDA also announced proposed changes to Machine Learning-Enabled Device Software Features (ML-DSF). This proposed change requires the manufacturer to provide a detailed description of the planned change, the methodology used to implement and validate such change, and an assessment of the potential marketing impact. Submission.Four These procedural changes may result in slightly longer approval times for medical devices.
Electric car
Sales surge in early 2023
Global EV sales in February 2023 increased by 23% month-on-month, with 800,000 units sold, up 45% from the same period last year.Five The main growth driver was China, where we sold another 100,000 units.6 By February, global sales of passenger cars (PCs) and light duty vehicles (LDVs) will total 1.4 million units this year, battery electric vehicles (BEVs) will reach 1 million units, and plug-in hybrid electric vehicles (PHEVs) will reach 40 units. Thousands sold. .7
New tax credit provision set
The US Treasury Department has issued further guidance on the EV tax credit provisions of the Inflation Reduction Act (IRA). To qualify for the EV tax credit of up to $7,500, consumers must purchase a qualifying new plug-in EV or fuel cell electric vehicle (FCV) for personal use and use it primarily in the United States. I have.8 The Internal Revenue Service (IRS) will provide a list of eligible vehicles on April 18, 2023 when the new requirements take effect. Eligible vehicles must be assembled in North America with a percentage of battery components and critical materials sourced domestically or from preferred sources.9 EVs that meet only one of the requirements are eligible for a $3,750 credit.Ten Among EV makers, Ford has confirmed that its entire EV lineup, including the F-150 Lightning, Mustang Mach E and E-Transit commercial vans, are eligible for the tax credit.
Artificial intelligence and social media
Generative AI, commercialization
Meta has set a deadline of December 2023 to expand its use of generative AI through an internal team the company set up in February.11 Andrew Bosworth, chief technology officer at Meta, believes AI can significantly improve the effectiveness of advertising.12 By asking AI to create ads for specific audiences, businesses should be able to save time and money. Advertising is Meta’s primary source of revenue, and it plans to apply the technology across its products and services, including Facebook and Instagram. Bosworth also expects generative AI to be used in the Metaverse, especially for content creation. Amazon Web Services (AWS) will launch an accelerator to support the most promising startups in this space.13 The initiative is expected to foster innovation and act as a catalyst for industry progress.
Robotics and the Internet of Things
Accelerating adoption of robotics in the automotive industry
With approximately one million robots in factories worldwide, the automotive industry leads the industry overall, accounting for about one-third of all robot installations.14 Automakers continue to use traditional “cage” industrial robots for basic assembly, but most have invested in collaborative applications for final assembly and finishing operations. The industry has invested $521 million in January 2023 and $620 million in February, and robotics funding is on the rise.15 Companies like Qualcomm are leading the way with new platforms with machine vision capabilities. Qualcomm’s RB1 and RB2 platforms are ideal for low-power, entry-level robotics and IoT applications.
cloud computing
The public sector reaches the cloud
Palantir expands strategic cloud computing partnership with Microsoft to include public sector. Palantir Federal Cloud Service (PFCS) has received approval from the Federal Risk and Authorization Management Program (FedRAMP) to support US Department of Defense (DoD) Impact Level (IL) 4 and DOD IL5 workloads on Microsoft Azure. rice field.16 This means that the strategic partnership between the two companies, previously limited to the private sector, will extend to the public sector. Customers and industry partners will now have access to collaboration capabilities in both the Microsoft Azure Government and Azure Commercial ecosystems, providing defense organizations with a broad range of new solutions to meet critical needs. Amazon Web Services also announced plans to invest more than $13 billion in Australia over the next five years.17 As part of this investment, the company aims to run its data centers entirely on renewable energy and create nearly 11,000 full-time equivalent positions.18
Fintech
Fintech funding has bounced back
Fintech funding rebounded in Q1 2023 after three straight quarters of decline.19 The startup has raised $17 billion through 847 deals, up from $11.7 billion in Q4 2022.20 The deal appears to have been constructed more cautiously in a difficult economic environment.twenty one Regtech, fraud prevention, and generative AI are among the themes that attract venture capital investment. On the Buy Now, Pay Later (BNPL) side, Apple is releasing a pre-release version of Apple Pay Later for select users and plans to make it more widely accessible in the coming months. With Apple Pay Later, a user can apply for a loan from He’s $50 to He’s $1,000. This loan can be used for online and in-app purchases made on iPhones and iPads at merchants that accept Apple Pay.twenty two Like most BNPL platforms, users can split their purchases into 4 payments over 6 weeks, with no interest or fees.
numbers
The following chart examines return and revenue growth expectations by theme based on the corresponding ETFs.
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Global X has developed an interactive, self-guided introductory course in thematic investing designed to share the latest ideas and best practices for incorporating thematic investing into your portfolio.
This program has been approved for a 1.0 hour CE credit towards CFP.®CIMA®CIMC®CPWA®, or RMA certified. To receive credit, the course taker must submit accurate and complete information on the requested forms, complete the entire course, and she must score 70% or higher on the thematic investing introductory quiz.
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Catch up on the latest research from GLOBAL X
To learn more about the disruptive themes that are changing our world, read Global X’s latest research, including:
ETF Holdings and Performance:
To review holdings and current performance of individual ETFs across the Global X Thematic Growth Suite, including information on the indices displayed, please click on the links below.
- Disruptive technology: Artificial Intelligence and Technology ETF (AIQ), Robotics and Artificial Intelligence ETF (BOTZ), Cybersecurity ETF (BUG), Cloud Computing ETF (CLOU), Autonomous and Electric Vehicles ETF (DRIV), Fintech ETF (FINX) , Video Games and Esports ETF (HERO), Lithium and Battery Tech ETF (LIT), Internet of Things ETF (SNSR), Social Media ETF (SOCL), China Biotech Innovation ETF (CHB), Data Center REIT & Digital Infrastructure Structure ETF (VPN), Emerging Markets Internet & E-Commerce ETF (EWEB), AgTech & Food Innovation ETF (KROP), Blockchain ETF (BKCH), Blockchain & Bitcoin Strategy ETF (BITS), Metaverse ETF (VR)
- People and Demographics: Cannabis ETF (POTX), Millennial Consumers ETF (MILN), Health & Wellness ETF (BFIT), E-Commerce ETF (EBIZ), Genomics & Biotech ETF (GNOM), Aging Population ETF (AGNG), Telemedicine & Digital Health ETF (EDOC), Education ETF (EDUT)
- Physical environment: US Infrastructure Development ETF (PAVE), Clean Tech ETF (CTEC), Renewable Energy Producers (RNRG), Clean Water ETF (AQWA), Hydrogen ETF (HYDR), Solar ETF (Raise), Wind Energy ETF (WNDY), Disruptive Materials ETF (DMAT), Green Building ETF (GRNR)
- Multi-theme: Thematic Growth ETF (GXTG), China Innovation ETF (KEJI)
