Fund providers are applying AI to a rising number of ETFs

Article Excerpt

Active ETF portfolio managers have developed a wide range of tools to improve their chances of beating the market. In some cases, the managers have decided that computers have a better chance of integrating information to consistently make good investment decisions. Computer-driven investment decision-making has also now arrived in the ETF world. For instance, Qraft Technologies, a South Korean fund manager with four New York-listed ETFs, use artificial intelligence (AI) to run its portfolios. The investment decisions for these funds are completely decided by computers—no humans are involved. Meanwhile, EquBot, a U.S. -based manager, offers two AI ETFs, the AI Powered Equity ETF (AIEQ) and the AI Powered International Equity ETF (AIIQ). The manager aims to gather information from millions of data points across news articles, social media, company financial statements, and technical, macro and market data. This information is processed by their artificial intelligence systems with the objective of spotting the best stocks from a large group of U.S. and international stocks. The investment…