New 'Buy the Dip' ETF uses AI tech to target oversold stocks

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A new exchange traded fund launched by Kaiju ETF Advisors seeks to leverage AI technology to automatically identify oversold stocks and take advantage of predicted rebounds. The actively managed fund, called The BTD Capital Fund (DIP), is designed to search for "quick-return opportunities" within the S&P 500 and Nasdaq 100.

DIP seeks to capitalize on individual short-term mean reversions of large-cap U.S. stocks by using a proprietary artificial intelligence technology system to identify target areas.

According to the company, the fund's AI backbone scans massive amounts of market data, applying more than 25 factors to identify possible opportunities for short-term gains.

"The company's AI identifies dips, initiates buys, and then instructs when to sell rebounded shares in short order — replacing a significant portion of the ETF's holdings every day," the firm explained.

Regarding the launch, Ryan Pannell, CEO of Kaiju ETF Advisors stated: "Buy the Dip ‘BTD’ is a simple concept — purchase an asset when it's oversold, then sell when its value bounces back." Pannell also added: "Our proprietary algorithm is the basis for an AI that can identify authentic dips in nanoseconds."

In other ETF launch related news, GraniteShares unveiled three new leveraged funds that capitalize off the price movements of popular tech stocks.