EquBot, the group behind the AI Powered Equity ETF (NYSE Arca: AIEQ), has expanded on its artificial intelligence-backed investment approach with a new international ETF that covers developed markets.
On Wednesday, EquBot launched the actively managed AI Powered International Equity ETF (NYSEArca: AIIQ), which has a 0.79% expense ratio.
“In considering the next iteration of our AI-driven investment approach, expanding the focus to include all of the developed markets outside of the U.S. was the next logical step,” Chida Khatua, Chief Executive Officer and co-founder of EquBot, said in a note. “We are very excited to be bringing AIIQ to market and furthering the use of AI in powering investor’s portfolios.”
Denise M. Krisko, President of VIA, and Rafael Zayas, Senior Portfolio Manager, will act as the portfolio managers for the new AIIQ.
The AI Powered International Equity ETF will try to generate capital appreciation by investing in companies in developed markets outside the United States based on a proprietary, quantitative model, the “EquBot Model”, developed by EquBot Inc. that runs on the Watson platform, according to a prospectus sheet.
Powered by Artificial Intelligence
The EquBot model on a day-to-day basis ranks thousands of stocks on the probability of each company benefiting from current economic conditions, trends and world events. The model then identifies between 80 and 250 companies for inclusion in the portfolio that have the greatest potential for price appreciation over the next twelve month period.
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Additionally, the model incorporates a volatility screen to maintain portfolio volatility comparable to that of the broader developed markets ex-U.S. The technology behind the investment methodology combines both fundamental and qualitative analysis while coming up with new investment insights through the use of AI through utilizing data to build predictive financial models on more than 15,000 publicly traded companies in the U.S. and in international developed markets.
“In order to fully understand the factors impacting an individual equity, you must be able to locate, synthesize and analyze thousands, sometimes millions, of pieces of data. Clearly, there is no way an analyst or even a team of analysts could process that much information in a timely manner,” Khatua added. “That is where the power of AI comes into the equation. As the volume of data explodes, the need for powerful, quantitative, objective analysis grows, particularly when building a portfolio of equities from developed markets around the world.”
For more information on new fund products, visit our new ETFs category.