One of today’s most-watched stocks isn’t a stock at all. The Qraft AI-Pilot U.S. Large Cap Dynamic Beta and Income ETF (NYSEARCA:AIDB) has made its market debut today, sparking incredible investor interest out of the gate. Investors appear to be intrigued by the diversification the AIDB exchange-traded fund (ETF) provides, holding a wide basket of U.S. large-cap equities and rebalanced by an AI-powered risk model. Accordingly, this will be one of the more closely watched funds for investors looking to play this secular trend.
It’s still early to predict how this ETF will perform. However, looking at the performance of other AI-related ETFs of late, which are up between 17% and 26% on the year, it’s likely the AIDB ETF will see a surge in interest.
With that said, let’s dive into what investors may want to know about this new ETF.
Why Is the AIDB ETF Surging Today?
What’s different about this ETF is that there’s no (human) active manager or offline model rebalancing the portfolio. Rather, an AI-powered model, which pulls data from more than 70 macro and market data sets, adjusts exposure on a periodic basis to various large-cap U.S. stocks based on risk signals in the market.
That’s a rather incredible use of AI and one that may have some hedge fund managers and professional money managers shaking in their boots. Indeed, if computers can analyze incredible quantities of data in an instant, and make decisions based on said data, the market could turn into a technological race for AI supremacy. That is, if these funds can outperform human active managers.
This ETF just jumped to the top spot on my watchlist, and I’ll be comparing how this fund performs to that of other high-profile actively-managed ETFs. If this is the future, investors better be paying attention. We could be entering a new era of investing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
