© 2019 SourceMedia. All rights reserved.

Robots are winning as AI-powered ETF beats the market, BofA says

(Bloomberg) -- There’s a new ETF where robots are picking the stocks -- and so far it’s beating its human competitors.

Although it’s only been trading since Oct. 18, the AI Powered Equity ETF, ticker AIEQ, which runs a proprietary quantitative model on International Business Machine Corp.’s Watson platform, has picked some really hot stocks.

robots are winning.jpg
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 19, 2017. U.S. equities advanced at the end of a turbulent week as corporate results and a rally in commodities fueled optimism in the world's largest economy. Photographer: Michael Nagle/Bloomberg

“It’s outperforming the S&P 500 thus far,” Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, wrote in a report Thursday. He noted that the fund is benefiting from timing, “as tech funds see the biggest inflows in 38 weeks.”

The ETF has posted a return of 0.8 percent since its inception two days ago, compared with 0.32 percent for the S&P 500 Index and 0.1 percent for the Nasdaq Composite Index over the same time frame.

The fund arrives as advanced technology and big data are making increasingly large waves on Wall Street. Firms like Morgan Stanley and Wells Fargo, for instance, have recently launched robots that will help research analysts with things like earnings reports and making stock trade recommendations.