Equbot, the firm behind the $140 million AI Powered Equity ETF (AIEQ) that launched last year, is looking to roll out a non-U.S. version of the artificial-intelligence-driven fund that targets developed markets. The AI Powered International Equity ETF (AIIQ) will be advised by Equbot and subadvised by Vident Investment Advisory on the ETF Series Solution platform, whereas AIEQ was launched using ETF Managers Group’s exemptive relief and on the ETFMG platform. Methodology The proposed fund, like its predecessor AIEQ, is actively managed and will use natural language processing via IBM’s Watson supercomputer to review thousands—if not millions—of pieces of data on daily basis. Every day, the Equbot Model identifies 80-250 companies that it thinks will outperform the broader market over the next 12 months based on its analysis of trends, events and economic conditions. The model even goes as far as to suggest weights for individual companies, though it will limit its exposure to any single company to 10% of the portfolio, the prospectus says. AIEQ was recently awarded Best New Active ETF at the 2017 ETF.com Awards. Contact Heather Bell at [email protected]
US-based Equbot is launching a second artificial intelligence-powered exchange-traded fund. The firm's first offering, the AI Powered Equity ETF, focuses on California equities and has pulled in $140m in assets. The new offering, AI Powered International Equity ETF, will focus on international stocks. Both products rely on IBM's Watson's natural language processing to trawl through reams of data, spotting companies it believes will outperform others. Equbot said the new offering will also suggest individual firm weights, but will limit single company exposure to 10% of the portfolio.