Victory Capital today announced the launch of VictoryShares Protect America ETF, an ETF designed to track the performance of companies within the US Aerospace and Defense Industry. The underlying index, the Nasdaq Yewno Aerospace & Defense Index (DEFENSE), was developed by Nasdaq, in collaboration with Yewno, a leading provider of Artificial Intelligence solutions for financial services.

Yewno uses AI technology to identify companies with exposure to the industries, sectors and market trends that investors are looking to capture. In the case of DEFENSE, Yewno identifies companies that have secured government contracts and approved patents in the Aerospace & Defense industries.

Yewno accomplishes this by reading and analyzing the full text of documents including US Defense spending, US government contracts, filings from the US Patent Office (USPTO), and from the World International Patents Office (WIPO). It then leverages a multi-factor model to determine the contribution and concentration that companies within the starting universe of the Nasdaq Global Index, an index comprised of approximately 9,000 global equities that spans developed and emerging markets, and USlisted securities have to Aerospace & Defense.

Nasdaq Global Indexes builds strategies that can track the world’s most innovative companies in every industry,” said Sean Wasserman, Vice President and Head of Index and Advisor Solutions for Nasdaq.

“Our work with Yewno allows investors access to a strategy that captures the cutting-edge innovation of the aerospace and defense industries.

Yewno’s AI technology transforms massive amounts of fundamental and alternative data into actionable insights. Their solutions include data packages, index strategies, and a web-based financial research platform, which are used by industry leaders including Citigroup, Moody’s Analytics, and STOXX. In addition to DEFENSE, Yewno also partnered with Nasdaq to create several index families including the Global Artificial Intelligence and Big Data, and Global Disruptive Technology indexes listed here.

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