Did Aping Warren Buffett And Hedge Fund Managers Bring Success To This AI-Powered ETF That Launched Last Week?

It’s a week since the Intelligent Livermore ETF LIVR, an exchange-traded fund that aims to mimic the investment philosophies of prominent investors, debuted, and here’s a look at how the financial asset has fared and the opportunity it presents for investors.

LIVR’s Origin? For the unversed, LIVR is the first instrument launched by investment firm Intelligent Alpha floated by Doug Clinton, co-founder and Managing Partner at Deepwater Asset Management. Intelligent Alpha aims to use artificial intelligence technology to zero in on portfolio assets, tapping specifically into three of the most popular large-language models such as OpenAI’s ChatGPT, Anthropic’s Claude and Alphabet, Inc.’s GOOG GOOGL Gemini.

LIVR has been named after famed 20th-century investor Jesse Livermore who is considered the pioneer of day trading. To start with, the LIVR portfolio will focus on opportunities in AI, Latin American equities, Asian equities, renewables and energy, and defensive stocks as selected by the AI investment committee, the firm said.

“My experience investing in emerging technologies over the last decade makes me believe that large-language AI models will drive a trillion-dollar shift in the asset management industry from traditional passive and active portfolios to AI-powered portfolios," said Clinton in a statement.

The ETF created a unique investment strategy by drawing upon inputs from financial information, public letters, interviews and statements from finance legends such as Warren Buffett and hedge fund managers such as Stanley Druckenmiller and David Tepper, Clinton reportedly told Fortune.

“They can sort of replicate or pretend to be any investor. That's one of the superpowers of AI,” he reportedly said. “You could have it be a super aggressive growth investor, or you could have it be a super value conscious Buffett acolyte.”

See Also: Best AI Stocks

LIVR has an expense ratio of 0.69% and it has $13.8 million in assets under management. The top five holdings of the ETF and each of their portfolio weightings are:

• PDD Holdings Inc. PDD: 4.60%
• Meta Platforms, Inc. META: 4.55%
• Nvidia Corp. (NASDAQ: NVDA): 4.51%
• Taiwan Semiconductor Management Co. Ltd. TSM: 4.41%
• Procter & Gamble Co. PG: 2.96%

Performance: LIVR began trading on the Nasdaq on Wednesday, Sept. 18, starting the session at a net asset value of $25.21 before ending down about 0.6% at $25.05. The ETF largely remained rang-bound around the $25 level and ended Tuesday’s session up 2.07% at $26.08. Over the past week, the ETF has gained 4.1%, outperforming the Invesco QQQ Trust QQQ and the SPDR S&P 500 ETF Trust (NYSE SPY), which are up a little over 3% and 2%, respectively.

During the same time, the Global X Artificial Intelligence & Technology ETF AIQ has added a comparable 4.6%.

It’s still in the early days to assess the success of the ETF. That said, the heavy weighting of AI-levered stocks could keep it on track to perform in line with these stocks. Since the AI bubble is seen to last for three to five years, LIVR could make hay while the sun shines. That said, the Federal Reserve’s interest rate cut is widely expected to apply brakes on the tech rally.

On Tuesday, LIVR added 2.07% before ending at $26.08, according to Benzinga Pro data.

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