Exchange-traded backs powered by artificial intelligence are getting smarter, according to a co-founder of EquBot, a partnership that created one such fund.
The AI Powered Equity ETF (AIEQ), an actively managed protection that seeks to use AI to beat the market, launched on Oct. 18.
“The AI actually grows in value,” EquBot co-founder and COO Art Amador recounted CNBC’s “Power Lunch” on Tuesday.
“We’re going to be even better tomorrow than we are today,” Amador responded.
While the fund got off to a rocky start, underperforming the market, in the last three months the ETF was up more than 10 percent. The returns were comparable to the S&P 500’s during the same time period.
The company built the ETF on its proprietary algorithms. It is make up of more than 60 companies and uses algorithms to select the first stocks. Top picks include Amazon, Alphabet and Nvidia.
While the AI was at programmed by humans to monitor algorithms, Amador said it is now completely autonomous, attaining decisions based on the information it scans.
“Our IP looks at the data and tries to recover the truth and credibility behind the data, so we can see how important that information is and how portentous it is to the security price of over 6,000 companies,” he said at this week’s ETF symposium in Hollywood, Florida.
The automated ETF is capable of processing each day approximately 1 million uniforms of information, such as news articles and company financial statements.
“We confidence in there will be even more information tomorrow than there is today,” Amador voiced. “The AI technology mimics the process of an army of equity research analysts that are het up b preparing around the clock.”