Why ETF Investors Must Leverage AI

Why ETF Investors Must Leverage AI

By Capital Markets CIO Outlook | Wednesday, April 29, 2020

The combination of AI with ETF enables investors to make data-driven investment decisions.

FREMONT, CA: Artificial intelligence (AI) is constantly being used by investors across their trading and wealth management services. Trading is influenced by a number of factors. One of the major benefits of AI is that it isn’t confined to one sector. Instead, AI can permeate into pretty much all industries. This means that AI will be able to provide investors with a different way of improving their market understanding. Exchange-Trade Funds (ETFs) are not untouched by the impact of AI either. 

AI can materially influence ETFs when incorporated into daily activities concerning portfolio management. According to ETF Database, AI ETF is already a trend that has at least 25 percent portfolio exposure to AI-related firms or uses AI methodologies to choose securities for the fund. 

While it might be too early to determine how successful the combination of ETF and AI has been, it is inevitable that new fintech products involving the duo will keep emerging in the market. With the proliferation of AI and its capabilities now being filtered down to the individuals, investors can use these tools to incorporate in their own research in order to seek out opportunities related to ETFs. Similarly, advisors and portfolio managers now have access to AI technology that can be developed into the ETF as well as other financial products, so that investment decisions are made simpler by parsing out key points from ambiguous data.

Thus, AI has opened the floodgates for the investors that are eyeing ETF and related products. Future AI advancements will further make it convenient for investors to invest in ETFs and make data-driven decisions.

See Also :- Top Artificial Intelligence Companies


Weekly Brief

Top 10 Alternative Data Solution Companies - 2018