Kanish Chugh

That's not going to do it in this case, because that could mean that we identify a, you know, there is an index that is available where you may find that it's not actually robotics and automation where they generate most of their revenue.

It could, you know, you find a company in there that generates a lot of revenue from selling something else.

It's nothing related to robotics and automation, but because somewhere they're classified as

as this sector of robotics and automation well then they're featuring in there so really important when we're doing the due diligence that we're looking for appropriate index providers to make sure that we find that they reflect the underlying theme or sector that we want and i think the second part is a constant sort of i guess you know analysis and you know just making sure that that index

is doing what it's supposed to do.

And so an example there, ACDC, which is a battery technology and lithium mining ETF, it looks at this whole idea of battery storage.

It uses in there, one of its databases it was using was a US Department of Energy database for storage solutions.

Now, that database ended up not being updated by the US government because they stopped funding for it.

And so the index provider for that particular ETF is Solactive.

They identify that that's a weakness.

You know, we're trying to target this theme of battery technology, but we're doing it potentially with what's a database that's not being updated on a regular basis.

So they changed that database to a company called Clean Horizon.

And they specifically are looking at the idea of clean energy solutions.

And so that for us was a great application that look, we can look at that, we can monitor this, the index providers are making sure that that product and that index is tracking what it's supposed to be doing.

And if it's not,

Well, then it's on us to make sure that either we change the index to one that can do or we work with the index managers to identify what can be done, which is what happened with the ACDC ETF.

So, yes, there is a risk.

And that's why I would say, again, understand who is the index manager behind it, understand who are the providers behind it, find someone reputable.

and find something that's actually keeping an eye on this.

Otherwise, you could end up with an ETF where you're supposed to get robotics and automation and you just get normal technology, which you may get from a tech ETF, which is fine, but that's what you're essentially doing.