EquBot LLC, in partnership with ETF Managers Group, debuted an exchange traded fund (ETF) powered by artificial intelligence: the AI Powered Equity ETF (NYSE Arca: AIEQ).
AIEQ is an active ETF built on EquBot’s proprietary algorithms and is the first artificial intelligence (AI) ETF that utilizes the cognitive and big-data processing abilities of IBM Watson to analyze U.S.-listed investment opportunities.
EquBot’s approach ranks investment opportunities based on their probability of benefiting from current economic conditions, trends and world- and company-specific events, and it identifies those equities with the greatest potential for appreciation. EquBot and ETF Managers Group expect the fund’s portfolio to consist of 30 to 70 of U.S. equities with volatility comparable to the broader U.S. equity market. Its securities can be of any market capitalization and the expense ratio is 0.75%.
Artificial intelligence allows computer systems to perform tasks that would normally require human intelligence, such as visual perception, speech recognition, decision-making and translation between languages. In the case of AIEQ, the fund’s underlying technology is constantly analyzing information for approximately 6,000 U.S.-listed equities, including company management and market sentiment, and processes more than one million regulatory filings, quarterly results releases, news articles and social media posts every day.
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“ETFs have made beta ‘smart,’ but with AIEQ we’re looking to make investing intelligent,” said Chida Khatua, CEO and co-founder of EquBot, in a statement. “EquBot AI Technology with Watson has the ability to mimic an army of equity research analysts working around the clock, 365 days a year, while removing human error and bias from the process.”
Khatua notes that the approach underpinning AIEQ also includes machine learning, giving it the ability to automatically learn and improve from experience without being explicitly programmed.
IndexIQ Launches Two Actively Managed Municipal Bond ETFs
IndexIQ launched the IQ MacKay Shields Municipal Intermediate ETF (MMIT) and the IQ MacKay Shields Municipal Insured ETF (MMIN), the latest additions to the firm’s fast-growing suite of fixed income ETF offerings.
MMIT and MMIN seek current income exempt from federal income tax. MMIT invests primarily in investment grade municipal bonds and seeks to enhance total return potential through the subadvisor’s active management approach.
MMIN invests principally in investment-grade municipal bonds covered by an insurance policy guaranteeing the payment of principal and interest and seeks to enhance total return potential through the subadvisor’s active management approach.
Both funds are actively managed by subadvisor MacKay Municipal Managers of MacKay Shields.
RobustWealth Partners with Apex Clearing to Offer Inclusive, Low-Cost ETF Trading
RobustWealth, a digital wealth management platform designed by and for investment advisors, announced a new partnership with Apex Clearing.
The partnership bolsters RobustWealth’s platform and enables trading of ETFs, mutual funds and U.S. stocks included in the platform fee, as well as a rapid client onboarding experience, account linking, same-day funding and easy-to-use bank transfers.
As part of RobustWealth’s BaseCAMP suite, advisors’ clients will continue to benefit from the sophisticated rebalancing and trading of their goal- and risk-based portfolios in a completely private-labeled environment. Using Apex’s flexible technology, they can eliminate paper-centric onboarding processes and dramatically reduce the time it takes to open and fund new accounts to just a few minutes.
FS Investments Launch Liquid Alternative Mutual Fund
FS Investments launched its first liquid alternative mutual fund, the FS Multi-Strategy Alternatives Fund (FSMMX (Class A), FSMSX (Class I).
The fund seeks to generate positive, low-correlated returns by combining best-in-class hedge fund managers and lower-cost alternative beta strategies.
It marries the institutional trend for hedge fund selection with alternative beta strategies in a cost-efficient manner and provides a single fund solution that brings an institutional-quality product to both retail and institutional investors.
BondWave Launches the New Engine for Fixed Income