Money managers with a good investment idea are loath to jump through the regulatory hurdles to launch an exchange traded fund, but some have turned to white-label ETF companies like ETF Managers Group to quickly and easily hit the ground running.
“We have everything in place, whether it is with the advisor, commodity pool operator, wholesaling, distribution, portfolio management, compliance,” Sam Masucci, Founder and CEO of ETF Managers Group, said at the Inside ETFs 2018 conference. “It is all in one spot.”
A small money management shop may have found it hard to go through all the hoops that it takes to launch an ETF, but through ETF Managers Group, a good investment idea won’t need to be bogged down by the regulatory and start up process.
“Some of our best partners are partners that are not even from the finance industry,” Masucci said.
For example, the relatively new AI Powered Equity ETF (NYSE Arca: 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.
The fund’s software ‘constantly’ analyzes information for roughly 6,000 U.S.-listed stocks, scanning through regulatory filings, news articles, social media posts, and traditional financial metrics—including factors pertaining to correlations and valuations—to find investments it perceives as undervalued.
The people behind AIEQ are programmers who understand machine learning and applied this background to finance.
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