ETF provider EquBot that specialises in combining financial analysis with the cognitive power of artificial intelligence (AI), has launched the AI Powered International Equity ETF (NYSE Arca:AIIQ).
“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,” says Chida Khatua, Chief Executive Officer and co-founder of EquBot. “We are very excited to be bringing AIIQ to market and furthering the use of AI in powering investor’s portfolios.”
AIIQ is an actively managed ETF that focuses on equity securities of companies located in developed markets outside the US.
Securities are selected based on the results of proprietary, quantitative, AI-driven model, which runs on the Watson platform. Each day, the EquBot model ranks thousands of stocks based on the probability of each company benefiting from current economic conditions, trends and world events, and identifies between 80 and 250 companies for inclusion in the portfolio that have the greatest potential for price appreciation over the next twelve months.
The model also seeks to incorporate a volatility screen, with a goal of maintaining portfolio volatility comparable to that of the broader developed markets ex-U.S.
AIIQ may invest in companies of any market capitalization, and the weight of any individual company in the underlying portfolio is capped at 10%.
EquBot’s state-of-the-art technology is driven by its proprietary algorithms, which operate across multiple AI cognitive computing platforms. In asset management and portfolio construction, EquBot’s technology combines both fundamental and qualitative analysis while formulating new investment insights through the use of AI, utilising massive amounts of data to build predictive financial models on more than 15,000 publicly traded companies in the US and in international developed markets.
“In order to fully understand the factors impacting an individual equity, you must be able to locate, synthesise and analyse 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,” says Khatua. “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. We’re very pleased to be bringing our latest ETF to market, and we look forward to delivering additional innovative AI-powered solutions across the investment landscape.”
AIIQ has an expense ratio of 0.79 per cent.
