ETFs powered by artificial intelligence are getting smarter, says fund co-founder
Exchange-traded funds powered by artificial intelligence are getting smarter, according to a co-founder of EquBot, a company that created one such fund.
The AI Powered Equity ETF (AIEQ (NYSE Arca: AIEQ), an actively managed security 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 told CNBC's "Power Lunch" on Tuesday.
"We're going to be even better tomorrow than we are today," Amador said.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 similar to the S&P 500's during the same time period.
The company built the ETF on its proprietary algorithms. It is composed of more than 60 companies and uses algorithms to select the best stocks. Top picks include Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Nvidia (NASDAQ: NVDA).
While the AI was originally programmed by humans to monitor algorithms, Amador said it is now completely autonomous, making decisions based on the information it scans."Our IP looks at the data and tries to find the truth and credibility behind the data, so we can see how important that information is and how important it is to the security price of over 6,000 companies," he said at this week's ETF conference in Hollywood, Florida.The automated ETF is capable of processing each day approximately 1 million pieces of information, such as news articles and company financial statements."We believe there will be even more information tomorrow than there is today," Amador said. "The AI technology mimics the process of an army of equity research analysts that are working around the clock."
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