Can a Robot Crush the Market? (AI-Traded ETF Analysis)

Emotions are running high in financial markets right now. Indexes swing up and down as investors buy and sell off headlines.

It begs the question: Could a robot beat the market and provide us outsized returns without all the drama?

Back in 2019, a revolutionary new exchange-traded fund (ETF) made the news because it used artificial intelligence (AI) and machine learning to buy and sell holdings.

And the EquBot AI Powered Equity ETF (NYSE: AIEQ) was beating the S&P 500! By August 2019, AIEQ was up 19% on the year compared to the S&P 500’s gain of only 17%.

AIEQ launched in October 2017. It uses AI to build predictive models within the universe of U.S. stocks. Those models identify stocks that have the most potential for capital appreciation.

But can algorithms and machine learning replace human subjectivity and analysis?

In this episode of The Bull & The Bear, I dive into several AI-traded ETFs and show you how they stack up.

Find out if any of these AI-traded ETFs belong in your portfolio.

Are AI-Traded ETFs the Future?

First, I want to clarify that these funds use artificial intelligence to select their stocks. They don’t invest in AI-related stocks.

That’s a big difference between ETFs that use AI and those that invest in AI.

Another is the human element. These new ETFs are based on predictive models and algorithms with little human interaction.

And these funds don’t rely on heavy fundamental analysis.

To be sure, Adam, Charles and I are bullish on artificial intelligence and how it will transform how we do things from manufacturing to communication.

But does AI have a future on the trading room floor?

In this episode of The Bull & The Bear, I show you how these AI-traded ETFs stack up and whether they’re wise holdings for your portfolio.