First AI ETF is out, would you buy at all?

After AIEQ launch date on 18 Oct 2017, AIEQ has been dropped 2.5% while sp500 has raised 1%. This AI etf is pure BS.

 

Investing. It is so simple, even an AI can do it!!

 

Why do you keep comparing it to the SP500 ? It is a SECTOR ETF , designed to replicate returns of that sector only. If you want SP500 Return buy SPY or similar.

Granted it is a "unique" sector. But you still buy a ETF based on its individual attributes/characteristics. So if you like the "concept" of AI picking stocks for your portfolio, this is for you.

But remember where the originator of the fund is coming from...AI is a hot buzz word now and they collect fees regardless of performance.

 

It's not suppose to have any correlation to the S&P 500. Most AI funds out there are pitching themselves as absolute return funds, not index funds. For example, "most" of them claim they will make money in a market downturn. Give them a year, not a week, before you judge their performance.

 

sp500 is its benchmark
https://www.cnbc.com/2017/10/20/a-new-robot-powered-etf-aeiq-is-beating-the-stock-market.html

 

already a month

 

Dosen't matter. It is a stand alone vehicle, see previous.

 

I think CNBC is incorrect. They stated that as an assumption. Every AI fund I've seen, and there are many, benchmark themselves to an absolute return index.

 

sp500 is its benchmark so it is fair enough to compare its performance to sp500. If anyone can brainlessly buy and hold sp500 etf and still beat this "AI", then this AI is totally useless. In current "hot market", AI should win sp500 by very good margin, then the drop period is to really test if it can hold its profit, but interestingly it is already losing.

 

Doesn't matter it is correct or not, anyone expects "AI" can beat the index if it is ok smart especially in a raising market.