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Portfolio > ETFs > Broad Market

New ETF Uses AI to Buy on Stock Dips

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Kaiju ETF Advisors has launched an artificial intelligence-driven, actively managed exchange-traded fund designed to buy on stock dips — the BTD Capital Fund (NYSE: DIP).

By harnessing the power of big data and artificial intelligence, the new Chicago-based company said today it believes it has eliminated the guesswork in finding dips in individual stocks.

While most ETFs track indexes or sectors, DIP seeks to capitalize on quick-return opportunities in the market, no matter where they are or the market conditions, the firm said. The artificial intelligence identifies dips, initiates buys and instructs when to sell rebounded shares in short order, replacing a significant portion of the ETF’s holdings every day, according to Kaiju.

“Buy the Dip is a simple concept — purchase an asset when it’s oversold, then sell when its value bounces back,” Kaiju ETF Advisors CEO Ryan Pannell said. “Our proprietary algorithm is the basis for an AI that can identify authentic dips in nanoseconds. And now we’re making that technology available to everyone.”

A fact sheet cites a Dec. 12 inception date and annual fund operating fees and expenses amounting to 1.29%.

The firm said the ETF will search for “needles in the haystack” short-term buying opportunities among the S&P 500 and Nasdaq-100 and sell when the stock price rises. reported last year that the first active AI ETF, AI Powered Equity ETF (AIEQ), launched in 2017. It recently traded at $31.10, up roughly 21% from its $25.69 price on Dec. 15, 2017.

Image: Adobe Stock


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