Interested in AI ETFs? How about an AI Value ETF that leverages artificial intelligence to look for value opportunities — an investment factor that has had a notable start to the year. One such strategy has seen strong technical indicators backing it up of late, with the WisdomTree U.S. AI Enhanced Value ETF (AIVL) hitting a key buy signal again on Thursday.
AIVL hit $92.08 as of midday Thursday, rising above its 200-day simple moving average (SMA) of $91.8. However, it was still below its 50-day SMA, which is still higher than its 200-day SMA, having encountered its “golden crossover” moment in recent weeks. That momentum took the fund close to overbought territory last month, but it has since dropped towards, but not entered into, oversold territory based on the Relative Strength Index (RSI).
AIVL actively invests in value opportunities backed up with a proprietary, quantitative AI model that analyzes factors like company fundamentals and market sentiment to pick between 60 and 190 stocks. The AI model caps stocks at 6% per security, buying and selling stocks monthly based on its recommendations, charging 38 basis points.
AIVL sets itself apart from other ETFs related to AI by leveraging an AI model to help it invest, rather than investing in AI-related opportunities themselves. The strategy benefits from overall improvements to AI models as the field of artificial intelligence continues to move forward, as evidenced by the widespread media coverage of OpenAI’s ChatGPT model this year.
The AI value ETF currently sits above $400 million in AUM and has a longstanding record of operation going back to its launch in 2006. AIVL has also been joined in the last few years by the WisdomTree Artificial Intelligence and Innovation Fund (WTAI), which started in 2021 and charges a 45 basis point fee to track the WisdomTree Artificial Intelligence & Innovation Index, which includes firms that benefit from advances in AI.
Technical indicators are no guarantee for investing, but they can help inform investors about patterns emerging for funds and ETFs. With AIVL still signaling a buy, it remains an exciting strategy to watch in the weeks ahead for investors intrigued by an AI value ETF.
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