SAN FRANCISCO--(BUSINESS WIRE)--EquBot, a leader in combining deep financial analysis with the cognitive power of artificial intelligence (AI), today announced the launch of the AI Powered International Equity ETF (NYSE Arca:AIIQ).
“In considering the next iteration of our AI-driven investment approach, expanding the focus to include all of the developed markets outside of the U.S. was the next logical step,” said Chida Khatua, Chief Executive Officer and co-founder of EquBot. “We are very excited to be bringing AIIQ to market and furthering the use of AI in powering investor’s portfolios.”
AIIQ is an actively managed ETF that focuses on equity securities of companies located in developed markets outside the U.S.
Securities are selected based on the results of proprietary, quantitative, AI-driven model, which runs on the Watson™ platform. Each day, the EquBot model ranks thousands of stocks based on the probability of each company benefiting from current economic conditions, trends and world events, and identifies between 80 and 250 companies for inclusion in the portfolio that have the greatest potential for price appreciation over the next twelve months.
The model also seeks to incorporate a volatility screen, with a goal of maintaining portfolio volatility comparable to that of the broader developed markets ex-U.S.
AIIQ may invest in companies of any market capitalization, and the weight of any individual company in the underlying portfolio is capped at 10%.
EquBot’s state-of-the-art technology is driven by its proprietary algorithms, which operate across multiple AI cognitive computing platforms. In asset management and portfolio construction, EquBot’s technology combines both fundamental and qualitative analysis while formulating new investment insights through the use of AI, utilizing massive amounts of data to build predictive financial models on more than 15,000 publicly traded companies in the U.S. and in international developed markets.
“In order to fully understand the factors impacting an individual equity, you must be able to locate, synthesize and analyze thousands, sometimes millions, of pieces of data. Clearly, there is no way an analyst or even a team of analysts could process that much information in a timely manner,” added Khatua. “That is where the power of AI comes into the equation. As the volume of data explodes, the need for powerful, quantitative, objective analysis grows, particularly when building a portfolio of equities from developed markets around the world. We’re very pleased to be bringing our latest ETF to market, and we look forward to delivering additional innovative AI-powered solutions across the investment landscape.”
AIIQ has an expense ratio of 0.79 percent.
EquBot offers compelling global financial technology solutions powered by artificial intelligence (AI) and machine learning (ML). The EquBot investment technology platform works around the clock to process market big data and unstructured electronic signals to formulate innovative and actionable investment insights.
The use of multiple instances of AI at the core of EquBot's proprietary algorithms position the firm as an industry leader in data consumption while simultaneously growing its global knowledge and investment value base. EquBot’s unique technology structure allows for efficient construction of custom investment solutions. EquBot seeks to use its investment technology platform to take leadership in bringing affordable AI investment products to market for investors of all backgrounds. EquBot is a participant in the “With Watson” program and a graduate of the IBM Global Entrepreneur Program.
EquBot is headquartered in San Francisco. Additional information is available at www.equbot.com.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s statutory or summary prospectus, which may be obtained by calling 1-650-451-5497, or by visiting www.AIIQetf.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests such as political, market and economic developments, as well as events that impact specific issuers. The fund is non-diversified, meaning it may focus assets in fewer individual holdings and therefore the fund is more exposed to individual stock volatility than a diversified fund. Investments in foreign securities involve greater volatility and political, economic and currency risks as well as differences in accounting methods.
The Fund issues and redeems shares on a continuous basis, at NAV, only in blocks of 50,000 shares (“Creation Units”), principally in-kind for securities included in the Fund’s portfolio, and only Authorized Participants (typically, broker-dealers) may purchase or redeem Creation Units.
The Fund is actively-managed and may not meet its investment objective based on the success or failure of the EquBot Model to identify investment opportunities. The portfolio managers may actively and frequently trade securities or other instruments in the Fund’s portfolio to carry out its investment strategies. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses. Some of the models used by the Adviser for the Fund are predictive in nature. The use of predictive models has inherent risks. When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. For example, by relying on Models and Data, the Adviser may be induced to buy certain investments at prices that are too high, to sell certain other investments at prices that are too low, or to miss favorable opportunities altogether. Similarly, any hedging based on faulty Models and Data may prove to be unsuccessful.
The AI Powered International Equity ETF is distributed by Quasar Distributors, LLC.