Sign up for Let's Talk ETFs on the podcast platform of your choice to make sure you don't miss an episode:
Artificial Intelligence - and the machine learning algorithms that underlie it - is showing up pretty much everywhere these days from traffic apps and social media content feeds to self-driving cars and the way we shout commands at Siri and Alexa throughout the day. So, it's no surprise that there's now an AI-powered ETF firm, EquBot. EquBot's founders, CEO Chida Khatua and COO Art Amador, met at the UC Berkeley Haas School of Business and bring very different skill sets to the table. Chida has an engineering background and spent nearly 2 decades at Intel prior to founding EquBot while Art worked at Fidelity for 8 years prior to founding EquBot.
They join the latest episode of Let's Talk ETFs to explain the inner workings of their AI Powered Equity (NYSEARCA:AIEQ) and International Equity (NYSEARCA:AIIQ) ETFs - the first actively managed ETFs powered by AI strategies to the market. According to Art, "The reason these funds are active is so they can demonstrate the power of AI to lead anywhere without prior constraints." Adds Chida, "When it comes to AI, there is no 100% crystal ball that can predict returns... we're dealing with increasing the probabilities of our predictions in an ongoing way over time." Without making guarantees of any sort, they believe placing artificial intelligence investing strategies into an ETF wrapper offers investors the best chance of obtaining persistent alpha at a reasonable cost. And while there are reasons for skepticism, the performance of AIEQ and AIIQ versus relevant index benchmarks makes this a story worth watching in the coming years.
This article was written by
Disclosure: I am/we are long AIIQ, AIEQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: For Disclosures, both Chida Khatua and Art Amador are personally long AIIQ and AIEQ. For a full list of holdings, updated daily, listeners can go to https://equbot.com/equbot-etfs/
I, Jonathan Liss does not have positions in any of the stocks or funds mentioned in today's show.