AI Technology Could Boost This Healthcare ETF

Artificial intelligence (AI) is obviously making major breakthroughs across all sectors, but in the healthcare arena, the technology is now piercing the preventative health veil and making headway in cardiovascular health risk. This could put certain AI-focused exchanged-traded funds on investors’ radars like the AI-Powered International Equity ETF (NYSEArca: AIIQ).

Per an Observer report, “Researchers at MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL) are using machine learning to estimate the risk of cardiovascular death. The system, RiskCardio, focuses on patients who have survived an acute coronary syndrome (ACS) and can better predict the risk of death caused by cardiovascular issues that block or reduce blood flow.”

AI technology is already being used to detect cancer and diabetes, and now, detecting heart disease can be added to the list.

“Using just the first 15 minutes of a patient’s raw electrocardiogram (ECG) signal, the tool produces a score that places patients into different risk categories,” CSAIL explained.

The RiskCardio system uses data derived from a patient’s ECG signal in order to determine his or her risk for heart disease. Current and past technology would require a bevy of data like age, weight, family history, and other factors in order to determine risk.

“Machine learning is particularly good at identifying patterns, which is deeply relevant to assessing patient risk,” stated Divya Shanmugam, the lead author on the research paper about RiskCardio.

What’s Under AIIQ’s Hood?

Under the hood, AIIQ runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.

AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.

Highlights of AIIQ:

  • AIIQ uses artificial intelligence to analyze and identify developed-market ex-US stocks believed to have the highest probability of capital appreciation over the next 12 months, while exhibiting volatility similar to the overall developed non-US market.
  • The fund selects 80 to 250 constituents and has no restrictions on the market cap of its included securities.
  • The model suggests weights based on capital appreciation potential and correlation to other included companies, subject to a cap of 10% per holding.
  • It is worth noting that while AIIQ relies heavily on its quantitative model, the fund is actively managed, and follows no index.

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