Some new exchange traded funds focusing on niche investment concepts struggle to attract investors attention and assets while others flourish. The newly minted AI Powered Equity ETF (NYSE Arca: AIEQ) belongs in the latter category.
AIEQ, which debuted in mid-October, is off to a solid start. 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, according to the company, 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. Daily turnover is high compared with other actively managed funds, EquBot said,” reports MarketWatch.
Home to 70 stocks, AIEQ had nearly $73 million in assets under management as of Dec. 5th, an impressive feat for an ETF that is less than two months old.
None of the ETF’s holdings account for more than 4.4% of its weight. Top 10 holdings in AIEQ include Nasdaq Inc. (NASDAQ: NDAQ), Nvidia Corp. (NASDAQ: NVDA), Capital One (NYSE: COF) and Dana Inc. (NYSE: DAN).