Redwood City California-based AI and alternative data firm, Yewno, Inc. recently announced the launch of the iSTOXX Yewno Developed Markets Blockchain Index in partnership with STOXX, the Deutsche Borse’s index group.
Yewno’s New Blockchain Index
Last week, Yewno announced that it had launched the iSTOXX Yewno Developed Markets Blockchain Index, the second index it has released in partnership with STOXX. In January, Yewno launched the STOXX AI Global Artificial Intelligence Index leveraging its AI based algorithm.
The creation of the iSTOXX Yewno Developed Markets Blockchain Index leverages Yewno’s artificial intelligence technology and an underlying dynamic knowledge graph which aggregates a large volume of structured and unstructured data in order to identify companies that are exposed to Blockchain technology and research.
The selection of companies included in the index spans multiple sectors and industries, and each component is selected based on the highest exposure to Blockchain technology. This particular index includes companies selected from the STOXX® Developed Markets Total Market Index which are found to have exposure to Blockchain. This new Blockchain index will serve as underlying strategy for an exchange-traded fund to be listed on the Canadian market in the next few weeks.
Yewno CEO Ruggero Gramatica explained the launch of this new index, “Yewno continues its journey in the creation of unique instruments able to surface hidden relationships across billions of increasingly fragmented, structured and unstructured data points leveraging our proprietary dynamic knowledge graph and Inference Engine. Once again, we are proud to strengthen our relationship with key partners such as STOXX in order to build solutions that readily capture emerging signals from a multitude of information sources.”
Yewno’s latest announcement is the third major index launch the AI oriented firm has made in 2018. As mentioned above, Yewno announced the launch of the STOXX AI Global Artificial Intelligence Index in January; then in May it announced the Nasdaq Yewno Global Disruptive Technology Benchmark Index, and a family of sub-indices specializing in specific technology groupings; and then last week, Yewno launched its Blockchain index with STOXX.
Yewno is not the only firm leveraging artificial intelligence to create financial products like indices and other passive products. Earlier this year, S&P Global’s new Kensho unit partnered with State Street Global Advisors to launch three SPDR ETFs based on Kensho’s New Economies indices: SPDR Kensho Intelligent Structures ETF (XKII); SPDR Kensho Smart Mobility ETF (XKST); SPDR Kensho Future Security ETF (XKFS).
Besides index creation, Yewno also offers alternative data feeds primarily targeted at quantitative hedge funds. The firm’s Emerging Technologies data feed, has been added to FactSet’s new alternative data marketplace while it also added the Yewno Alpha Matrix and Emerging Technology datafeeds to Nasdaq’s Analytics Hub data platform.
We suspect that Yewno’s business model will prompt it to continue developing innovative index products by leveraging its proprietary Knowledge Graph and AI based inference engine in partnership with well-known index and ETF sponsors. Yewno is likely to commercialize the data created from these new index products by selling it via the growing number of alternative data platforms that has been springing up in the past year or two.