AI-managed ETFs debut with $30 million assets and early outperformance
AI is stepping into the investing world, with a handful of exchange-traded funds (ETFs) now run entirely by algorithms.
These AI-managed funds are still tiny (less than six exist and together they manage just $30 million), but they're already making waves.
One standout, the High Conviction US Equity AI-Managed ETF, has gained 2.7% since its August 21 launch, beating the S&P 500's 1.1% return in that time.
Managers plan more AI, remain wary
With results like these, it's no surprise asset managers are paying attention: a recent survey found that 91% plan to use more AI this year.
Two funds launched by Israeli asset manager FinQ and the Pacer S&P 500 3AI Top 100 ETF and the Pacer S&P World 3AI Top 100 ETF have even outperformed major indexes.
Still, many firms prefer "AI-enhanced" strategies that mix tech with human oversight, since these new funds come with higher fees and not much history yet.
For now, most asset managers are taking it slow, curious about what AI can do but not quite ready to hand over the reins completely.