A new ETF powered by artificial intelligence — the AI Powered Equity ETF (NYSE Arca: AIEQ) — debuted on the New York Stock Exchange today.
The fund comes thanks to a partnership between EquBot LLC and ETF Managers Group (ETFMG).
AIEQ is an active ETF built on EquBot’s proprietary algorithms, utilizing the cognitive and big data processing abilities of IBM Watson™ to analyze U.S.-listed investment opportunities.
Chida Khatua, CEO and co-founder of EquBot LLC, said ETFs have made beta ‘smart,’ but with AIEQ they are looking to make investing intelligent.
“EquBot AI Technology with Watson has the ability to mimic an army of equity research analysts working around the clock, 365 days a year, while removing human error and bias from the process,” Khatua said.
EquBot’s approach ranks investment opportunities based on their probability of benefiting from current economic conditions, trends, and world- and company-specific events, and identifies those equities with the greatest potential for appreciation. EquBot and ETFMG expect the fund’s portfolio to typically consist of 30 to 70 of U.S. equities only and volatility comparable to the broader U.S. equity market.
With artificial intelligence, computer systems are able to perform tasks that would normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages. In the case of AIEQ, the fund’s underlying technology is constantly analyzing information for approximately 6,000 U.S.-listed equities, including company management and market sentiment, and processes more than one million regulatory filings, quarterly results releases, news articles, and social media posts every day.