AdvisorShares Deploys AI-Powered ETF
AdvisorShares’ newest ETF is the latest in a line of funds to use artificial intelligence in an attempt to outperform the markets.
The AdvisorShares Let Bob AI Powered Momentum ETF (LETB) debuted on the NYSE Arca on Wednesday with a relatively high 0.87% expense ratio.
LETB uses market research produced by an AI from the Alabama-based startup Let Bob. That firm aims to gauge companies poised to beat analyst expectations and weight in favor of stocks with the strongest price momentum.
The fund aims to have its assets split evenly between small, mid and large cap stocks in most market conditions.
LETB is the latest in a handful of existing ETFs that try to lever artificial intelligence for an advantage over other investment vehicles. The largest is the $1.8 billion SPDR S&P Kensho New Economies Composite ETF (KOMP), which selects stocks from a series of AI-driven indexes following disruptive technology industries.
QRAFT, an independent issuer, has four ETFs, with approximately $52 million in assets, that aims to find companies potentially set for future outperformance or higher dividends.
Contact Dan Mika at dan.mika@etf.com, and follow him on Twitter
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