EquBot Launches Global AI-Powered ETF The AI-
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Posted On: 06/13/2018 1:03:46 PM
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EquBot Launches Global AI-Powered ETF
The AI-Powered Equity ETF (AIEQ n/a) launched late last year using IBM’s Watson AI technology for its stock selection process instead of humans. So far, the strategy has worked with AIEQ generating a total return of 14% since inception versus a 10% return for the S&P 500. This week, EquBot debuts an international version of that strategy with the launch of the AI-Powered International Equity ETF (AIIQ n/a).
AIIQ is an actively-managed fund that aims to outperform global equity benchmarks with comparable levels of volatility. On a daily basis, a series of proprietary analytical algorithms using AI technology are used to build predictive financial models on thousands of international companies. From that universe, AIIQ anticipates holding between 80 and 250 names with the greatest potential for price appreciation over the following 12 months.
A New ETF From Mr. Wonderful? Stop the Madness!
Most people know Kevin O’Leary as Shark Tank’s sharp-tongued, occasionally cranky angel investor. Fewer people probably know that his firm, O’Shares, operates a successful suite of six different ETFs. The newest fund in that group, the O’Shares Global Internet Giants ETF (OGIG n/a), screens for balance sheet quality in the same way that all other O’Shares ETFs do, but is the first to focus on a non-dividend strategy.
The fund’s index starts by looking at the 2,500 largest global companies that derive at least 50% of their revenues from the Internet software, service or retail spaces, and then screens them for both quality and growth. The quality factor is determined by a company’s cash burn rate, or the rate at which shareholder capital is spent, while revenue growth is used to determine the company’s growth rating.
Companies that have a high growth rating and a low cash burn rate qualify for inclusion in the index. REITs, BDCs, MLPs and closed-end funds are excluded from consideration.
Top holdings for the fund currently include Alibaba (BABA), Amazon (AMZN), Facebook, Alphabet (GOOG) and Tencent Holdings (TCEHY).
http://etfdb.com/news/2018/06/13/etf-launches...6-48449885
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