AI-driven Exchange Traded Funds (ETFs) Show Some of the Best Financial Results among Wall Street companies.
IN Through discussions at the London ETF Edge conference, it emerged that automated stock collection systems were slowly beginning to outperform humans. One example is the AIEQ ETF, powered by IBM Watson, which scans 6,000 companies’ securities every day. and processes millions of information sources to form an optimal portfolio of 75-100 items. In the first half of 2019 alone, the value of ETFs collected by AI grew by 11%, double the growth rate of the S index&P 500.
According to the management of the fund, their artificial intelligence replaces 1,000 analysts, predicting the most promising options, whose profit indicators will be higher than the market average. The algorithm is not tied to a specific sector, examines all the financial performance of companies over the past few years and scrutinizes publications on social networks. The list is regularly revised and the leaders change, but in December the system gave the highest preference to companies such as Alphabet, Amazon, Netflix, Costco and Baxter International.
The ARKK ETF, also driven by AI, focuses on the technology sector. Since the beginning of 2019, it has risen by 15% and has remained positive for the last three months, when the American stock market was going through hard times, and S&The P 500 is down 4%. It compiles a portfolio of 30 stocks of companies from various sectors that are engaged in the development of advanced technologies. January 2019 package includes NanoString Technologies, Netflix and Square.
Modern technology has also begun to transform even the banking sector, which is known for its conservatism..
text: Ilya Bauer, photo: intelijen.co