Amplify AI Powered Equity ETFNYSE American: AIEQ

It's tempting to think that computers can make better investment decisions than we can.

Amplify AI Powered Equity ETF implements a strategy using deep learning to select stocks that are likely to outperform. AIEQ has a high fee and an extremely high turnover rate. It has lagged the S&P 500 since inception and shows a higher volatility.

AIEQ uses IBM's Watson-powered models to choose stocks from various U.S. market segments. With a 0.75% expense ratio and $101 million in assets, the ETF had a strong performance in 2020. However, its long-term performance has been disappointing, trailing behind SPY by 62% since its launch in November 2017. AIEQ's six-month win rate is only 38%, and despite claims that its models improve over time, the portfolio turnover increased significantly in the past year, leading to worsening results.

The past week saw a total of 13 ETF launches. There were also a host of material changes to existing funds, and some closure activity.

Counterpoint Funds announced the launch of the Counterpoint Quantitative Equity ETF (NYSE Arca: CPAI). The ETF seeks long-term capital appreciation by investing in individual stocks that have exposure to multiple factors.

Charlie Munger's investment philosophy, which prioritizes quality, selective investing, and a long-term perspective, can influence ETF investors to be discerning in their choices and avoid excessive diversification.

AI Powered Equity ETF is an actively managed fund that uses deep learning technology. The fund is being reorganized and will be sold to Amplify ETFs. The AIEQ ETF has underperformed the S&P 500 Index and another AI-powered ETF, has high fees and turnover rate, and low liquidity.

The third-quarter 2023 was a downbeat period for investors, mainly due to rising rates.

Robots and artificial intelligence (AI) are increasingly gaining precedence in our daily life.