Market Overview

Podcast: An AI ETF Powered By Watson And Deep Mind

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  • (0:30) - Investment Process of EquBot: AIEQ
  • (3:45) - Data Analysis: How Does It Determine Relevancy?
  • (5:30) - Why Being Actively Managed Is Important
  • (7:10) - AIEQ Performance and  ETF Managers Role
  • (12:00) - The Future For ETF Managers: Upcoming ETFs

In this episode of ETF Spotlight, I talked with Art Amador, COO and co-founder of EquBot and Sam Masucci, Founder & CEO at ETF Managers Group.

We discussed the world's first ETF to utilize Artificial Intelligence for stock selection—the AI Powered Equity ETF AIEQ--that was created by Equbot and issued by ETF Managers Group.

AIEQ uses the power of IBM's Watson & Google Deep Mind to select stocks with the greatest potential for appreciation and decide their corresponding weights. Their software can process over one million pieces of information daily on approximately 6,000 US companies. Art explained how this process works.

We know that data analysis is playing a growing role in investing as the amount of information available has exploded. However, sometimes the challenge lies in deciding the importance of each piece of information in the investment decision.

We discussed how AIEQ decides what's relevant and what's not.

After AIEQ, many other AI powered ETFs have made their debut. But AIEQ is the only actively managed one. Art explained why active management is important for this ETF.

One of the biggest advantages with AI is that machines can learn from their mistakes and improve. We know that DeepMind's AlphaGo Zero, the strongest Go player in history, is self-taught. It learned to play simply by playing games against itself.

We discussed whether AIEQ could continue to learn and improve over time.

If you want to learn more about this ETF and other ETFs issued by ETFMG, please visit the ETF section of zacks.com for more information on this ETF and other ETFs.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: contributor contributorsSpecialty ETFs Media ETFs

 

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