ETFs using machine learning and natural language processing to pick stocks do not consistently outperform indexes – yet
Over a three-year period ended April 19, 2023, the conventional index-tracking SPDR S&P 500 ETFhas delivered returns of 14.8 per cent. Qraft AI-Enhanced US Large Cap ETF is close behind, with returns of 14.5 per cent. Qraft AI-Enhanced US Large Cap Momentum ETF has delivered 12 per cent, while EquBot’s AI Powered Equity ETF managed 4.4 per cent, Merlyn.AI’s Bull-Rider Bear-Fighter Index 6.4 per cent and WisdomTree International’s AI Enhanced Value Fund 11.9 per cent.
Experts say that when picking stocks, AI can struggle to track trends, which may not show up in past data, company reports and news media that it analyzes using natural language processing. As a result, AI-based systems still rely on a degree of human oversight and intervention. WisdomTree International’s AI ETF offering allows its portfolio managers to review and veto trades, although the company says this “has not happened a lot.” EquBot has operational controls to help it deal with fake or incorrect financial information and decide how often and what type of securities to trade.
“We don’t have HR, it works weekends, it doesn’t take holidays. It can do this so much more quickly than a human could and it can go extremely deep.” Human fund managers continue to find it difficult to prove their worth against indexes and the conventional ETFs that track them.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
No winning ticket sold for Friday's $50 million Lotto Max jackpotThere was no winning ticket sold in Friday\u0027s Lotto Max $50 million draw.
Read more »
Drake announces Toronto stops on ‘It’s All a Blur’ tour this fallHip-hop superstar and Toronto’s hometown hero Drake will return to the city for two shows this fall.
Read more »
David’s Bridal granted creditor protection in Canada amid bankruptcy hearings in U.S.David’s Bridal has said it could eliminate more than 9,000 jobs in the coming months
Read more »
Jane Goodall coming back to Sudbury May 30She’s coming for the premiere of the new IMAX film ‘Reasons for Hope’
Read more »
Five things to watch for in the Canadian business world in the coming weekTORONTO — Five things to watch for in the Canadian business world in the coming week:
Read more »
Five things to watch for in the Canadian business world in the coming weekFrom railway earnings to Bank of Canada deliberations, here are five things to watch for in the Canadian business world in the coming week:
Read more »