ChatGPT, a popular language bot, has demonstrated a humanlike capability to render articles and emails. It even rendered messages from dating-apps . It will not generate a portfolio that beats the market if you ask it.
The $102 Million AI Powered Equity ETF (AIEQ ), launched in 2017, has quietly fulfilled that request until now. The fund was issued by ETF Managers Group, in partnership with Equbot Fintech. It uses IBM’s Watson supercomputer for its portfolio balance.
The 114-holding portfolio has increased 10.4% in 2023 so far, while the Vanguard Total Stock Market eTF has increased 5%.
ETF.com has highlighted that the former is actively managed and therefore more expensive than the benchmark fund. This reduces actual returns for investors. Vanguard charges 0.3%, while the AI-powered ETF costs 0.75%. Both funds have JPMorgan as well as UnitedHealth Group among their top-10 holdings.
According to ETF.com, Chris Natividad is Equbot’s chief investment officer. He said that the Watson-powered fund can go beyond market data and use information from earnings calls and tweets to cull.
Natividad stated that “We are focused on investment-related data, looking at how different types of signals impact security practice across different time periods,” per ETF.com.
He said that the fund’s best days are still ahead. Our fund will evolve and change with time, just like ChatGPT’s answers.
ChatGPT’s parent company OpenAI secured a $10 Billion investment from Microsoft this Month. The technology continues to make waves in other sectors.
BuzzFeed, an online media outlet, announced last week that it will use the technology to create content. educators have warned about the bot’s repercussions on schools and chipmakers plan to cash in.