2023 In Review: A Look At BTD Capital Fund And How It's Demonstrating The Power Of AI

In a year firmly marked by technological advancements in AI, Kaiju's BTD Capital Fund seems to be an intriguing player in the fusion of finance and artificial intelligence. The fund's Buy the DIP Capital Fund ETF DIP is powered by Kaiju's advanced ARCⓇ system, which navigated the complexities of 2023’s volatile market using the power of AI-driven investment strategies. If Kaiju’s BTD Capital Fund sees continued success, we could be looking at a new wave of technological innovation in financial markets powered by artificial intelligence.

AI-Driven Investment Success

In the year since its inception, the BTD Capital Fund has successfully leveraged machine learning to constantly evolve and improve its risk management decisions. The fund uses sector-agnostic mean reversion strategies to acquire oversold equities stocks within the S&P 500 (a stock market index tracking the stock performance of approximately 500 large companies listed on stock exchanges in the United States) and NASDAQ 100 (a stock market index comprised of 100 equity securities issued by the largest non-financial companies listed on the Nasdaq stock market), and a sophisticated algorithm to conduct over two billion daily examinations, rebalancing accordingly. 

The portfolio also has an average holding period of just three days, which allows it to provide short-term exposure to markets with rapid trade execution aimed at maximizing investor returns. Despite a year full of fluctuations, the fund's use of the ARCⓇ system and its strategic asset allocation demonstrates Kaiju's commitment to successfully navigating market volatility.

2023 Fund Performance Overview

The BTD Capital Fund's journey through 2023 is a testament to the rapid innovations of AI in finance. The fund was launched in December of 2022 and, just one year later, has already demonstrated incredible adaptability to yield success. 

• First Quarter 2023:+1.56%.
• Second Quarter 2023: +1.82%
• Third Quarter 2023: -1.87%
• Fourth Quarter 2023: +8.16%
• Year-To-Date ( 2023 YTD): +9.76%.

Performance data quoted is based on NAV, represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the original cost. For the most recent standardized and month-end performance, visit the fund’s website at www.dipetf.com

Looking Ahead To 2024

As we turn the page to 2024, the BTD Capital Fund reflects on a year of growth and sets its sights on continued expansion.

Further bolstering its appeal, the BTD Capital Fund lowered its management fees from 1.25% to 0.75%, a move putting Kaiju one step closer to its goal of democratizing access to advanced AI investment tools. This reduction in fees, effective from December 1, 2023, is first and foremost a cost-saving measure for investors, but it’s also a sign that the DIP is enhancing its appeal to a diverse range of investors, reflecting its commitment to serving an even broader audience in the years to come.

Powering The Future Of Investment

Kaiju's DIP ETF, developed by a diverse team of expert physicists, mathematicians, financial behaviorists, data scientists and analysts, cryptographers and computer programmers, is working hard to leverage AI's speed, consistency and thoroughness in an effort to consistently outperform traditional investment strategies such as indexing. If these innovations prove successful in outperforming traditional investments and democratizing portfolio enhancements previously limited to institutional or high-net-worth investors, it could provide a glimpse into the future of finance where AI and human expertise come together to create smarter, more efficient investment strategies.

The AI Advantage

As Kaiju prepares for the next financial year, it stands at the forefront of a potential revolution in investment management. Its AI is doing exactly what AI does: continuously evolving and learning in order to navigate the complexities of the market with even greater efficiency in 2024. Moreover, Kaiju's emphasis on responsible AI usage and transparency will continue to be top of mind as it works to build investor trust in the new dawn of AI-driven finance.

Feature photo by Mohamed Nohassi from Unsplash.

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (800) 617-0004 or visit our website at www.dipetf.com. Read the prospectus or summary prospectus carefully before investing.

The Fund is distributed by Quasar Distributors, LLC. Exchange Traded Concepts, LLC (the “Adviser”) serves as the Fund’s investment adviser. Kaiju ETF Advisors (the “Sub-Adviser”) serves as the Fund’s investment sub-adviser.

Investing involves risk, including loss of principal. The Fund is subject to numerous risks including but not limited to: Equity Risk, Large Cap Risk, Management Risk, and Trading Risk. The Fund is actively managed and may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund. The Fund’s principal investment strategies are dependent on the Sub-Adviser’s understanding of artificial intelligence. The Fund relies heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such a model. Specifically, the Fund relies on the Kaiju Algorithm to implement its principal investment strategies. To the extent the model does not perform as designed or as intended, the Fund’s strategy may not be successfully implemented and the Fund may lose value. A “value” style of investing could produce poor performance results relative to other funds, even in a rising market, if the methodology used by the Fund to determine a company’s “value” or prospects for exceeding earnings expectations or market conditions is wrong. In addition, “value stocks” can continue to be undervalued by the market for long periods of time. The Fund is expected to actively and frequently trade securities or other instruments in its portfolio to carry out its investment strategies. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses. Frequent trading may also cause adverse tax consequences for investors in the Fund due to an increase in short-term capital gains. The fund is new, with a limited operating history.