Paulina Kappen, a student of research, development and management in social work at the Kiel University of Applied Sciences, demonstrates the capabilities of a robot used to care for dementia patients, in Hamburg, Germany, November 21, 2019.
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The AI Powered Equity ETF has doubled the performance of the S&P 500 so far in 2023.The strong outperformance comes as investors grow more interested in artificial intelligence after the release of ChatGPT.These are the top 10 holdings in the AI Powered Equity ETF that’s driven by IBM’s Watson.
Artificial intelligence has been all the rage among investors this year after the successful release of ChatGPT late last year sparked a craze among consumers and companies.
One ETF has been utilizing aspects of artificial intelligence to drive its investment decisions since its launch in 2017: the AI Powered Equity ETF.
With $120 million in assets under management, the ETF has had a great start to 2023, posting year-to-date performance of about 14%. That’s about double the S&P 500’s year-to-date return of 7%.
The AIEQ ETF is actively managed and powered by IBM’s Watson supercomputer. The fund utilizes machine learning, sentiment analysis, and natural language processing to pick the stocks in its portfolio. The portfolio analyzes companies via four quadrants, which include financial analysis, news, management, and macro.
According to DataTrek Research, the ETF is currently fully invested, as it holds just 0.2% in cash and 151 individual stock positions.
“These moves seem to reflect the algorithm’s conviction in the continuation of a broad-based US equity market rally,” DataTrek co-founder Jessica Rabe said in a Tuesday note. “Given current valuations, the US equity market is not expecting an economic contraction and nor is AIEQ, just based on its current stock picks.”
These are the top 10 holdings in the AI Powered Equity ETF that’s driven by IBM’s Watson supercomputer.
10. APA Corporation
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Ticker: APA
% of ETF: 1.6%
Industry: Oil & Gas
9. Prudential Financial
Pedestrians pass the Prudential Insurance Company building August 10, 2004 in Newark, New Jersey. Security has been tight at the landmark Newark building since federal authorities revealed that terrorists groups had considered the building a possible target.
Chris Hondros/Getty Images
Ticker: PRU
% of ETF: 1.7%
Industry: Financial Services
8. Roku
Roku
Ticker: ROKU
% of ETF: 1.9%
Industry: Streaming Platform
7. Norwegian Cruise Line Holdings
Norwegian Cruise Line
Ticker: NCLH
% of ETF: 1.9%
Industry: Cruise Ships
6. Celsius Holdings
Celsius Heat energy drinks
Celsius
Ticker: CELH
% of ETF: 1.9%
Industry: Energy Drinks
5. Tesla
A Tesla car dealership in Maplewood, Minnesota.
Michael Siluk/Getty Images
Ticker: TSLA
% of ETF: 2.8%
Industry: Electric Vehicles
4. Zoetis
Zoetis CEO Juan Ramon Alaix gives an interview following his company’s IPO on the floor of the New York Stock Exchange
Thomson Reuters
Ticker: ZTS
% of ETF: 3.3%
Industry: Animal Health
3. Constellation Energy
ZHANGJIAKOU, CHINA – JULY 02: Wind turbines are pictured on a barren mountain at Shenjing Village on July 2, 2018 in Zhangjiakou, Hebei Province of China. The installed capacity of renewable energy electricity generation in Zhangjiakou has reached 12.03 million kilowatts.
(Photo by VCG/Getty Images)
Ticker: CEG
% of ETF: 3.5%
Industry: Clean Energy
2. UnitedHealth Group
Picture illustration of a UnitedHealth Group health insurance card in a wallet
Reuters
Ticker: UNH
% of ETF: 3.6%
Industry: Health Insurance
1. Novavax
Dr. Rhonda Flores looks at protein samples at Novavax labs, one of the labs developing a vaccine for the coronavirus, in Gaithersburg, Maryland on March 20, 2020.
Andrew Caballero-Reynolds/AFP
Ticker: NVAX
% of ETF: 4.3%
Industry: Biotechnology