Artificial Intelligence, Watson Go International With New ETF

EquBot, the company behind the AI Powered Equity ETF AIEQ that runs on the Watson platform, is taking its artificial intelligence capabilities international with a new exchange traded fund.

The AI Powered International Equity ETF AIIQ debuted Wednesday. AIIQ is actively managed and holds ex-U.S. developed markets stocks.

What Happened

EquBot launched the AI Powered Equity ETF in October. The product has gotten off to impressive start, as highlighted by its $137.63 million in assets under management.

“The fund’s software ‘constantly’ analyzes information for roughly 6,000 U.S.-listed stocks, according to the company, scanning through regulatory filings, news articles, social media posts and traditional financial metrics — including factors pertaining to correlations and valuations — to find investments it perceives as undervalued. Daily turnover is high compared with other actively managed funds, EquBot said,” reports MarketWatch.

AIEQ's net asset value is up 8.58 percent year-to-date as of June 5, according to issuer data.

Why It's Important

The new AIIQ uses an AI-powered model that also 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. 

Individual securities cannot exceed weights of 10 percent in AIIQ. The new ETF debuted with 150 holdings.

What's Next

Top 10 holdings in AIIQ include Toyota Motor Corp. TM, SAP SE SAP and Russian Internet search giant Yandex NV YNDX.

EquBot's technology combines fundamental and qualitative analysis powered by artificial intelligence capabilities to build predictive models on over 15,000 domestic and ex-U.S. publicly traded companies. Data points that go into model include financial news, social media sentiment, market signals and company financial data.

The new ETF charges 0.79 percent per year, or $79 on a $10,000 investment.

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