Todd Rosenbluth appeared on TD Ameritrade to discuss artificial intelligence in advance of VettaFi’s upcoming August 30th AI Symposium.
“We at VettaFi are seeing really strong interest, really strong engagement toward all things AI,” Rosenbluth said. He explained that there are many ways to slice into the AI pie. One way is to focus on companies directly attempting to manifest the technology. Another is through ETFs with broad exposure that includes AI. Additionally, some ETFs use AI to make stock selections.
Why AI Right Now?
Asked why AI is important right now, Rosenbluth noted that beyond engagement on VettaFi’s platform, AI funds are also seeing flows. Two ETFs with direct exposure include the Global X Artificial Intelligence & Technology ETF (AIQ) and the iShares Robotics and Artificial Intelligence Multisector ETF (IRBO). Rosenbluth added, “These ETFs are performing really well; they are up there with some of the more growth-focused ETFs.” Disruptive tech ETFs with some exposure to AI and broader exposure include the Spear Alpha ETF (SPRX) and the BNY Mellon Innovators ETF(BKIV).
TD Ameritrade on AI Managed ETFs
Meanwhile, the QRAFT AI Enhanced U.S. Large Cap ETF (QRFT), is using AI to manage its funds. Because AI is free from emotional bias, it can make stock selections purely off data. QRAFT also features another AI-enhanced fund in the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM).
Asked if volatility could be a factor in the space, Rosenbluth said it could. He noted, “If you are using AI to pick stocks, then the computer or machine told us to buy the stock. It’s a lot harder to ask why that is the case other than ‘this is what the data told has us.’” Later, he added, “They are going to make changes more frequently – they being AI-driven ETFs – then a more traditional fundamentally focused AI ETF.”
Advisors Need to Understand AI
Given the scope of depth of AI funds already on the market, it is more critical than ever for investors to wrap their heads around the technology. Fortunately, VettaFi’s free AI Symposium on August 30th will be there to illuminate this fascinating space.
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