MarketWatch: “This fund driven by artificial intelligence is ditching big tech. Here’s what it’s doing instead.”By admin_45 in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek co-founder Jessica Rabe:
.... "The artificial-intelligence Powered Equity ETF AIEQ, -0.65% seems to have caught on. It’s an exchange-traded fund that uses IBM Watson to pick stocks, and now it doesn’t have any of the megacap tech giants in its top 10 holdings. Jessica Rabe, co-founder of DataTrek Research, points out that as recently as September, Apple AAPL, -0.58%, Microsoft MSFT, -0.35%, Amazon and Alphabet were its top four positions, making up nearly a quarter of the exchange-traded fund. Even in November, Microsoft, Alphabet and Amazon accounted for about 15% of the fund. Now, only Apple of the FAANG stocks is in the portfolio.
What is the fund doing now? It still has a smattering of tech stocks in its top 10, led by microchip maker Advanced Micro Devices AMD, -0.78%, but also investments including diabetes monitoring system maker Dexcom DXCM, -7.09% and electrical-system maker Eaton ETN, +0.31%. There’s also a bit of a cybersecurity theme with both Palo Alto Networks PANW, -0.64% and Fortinet FTNT, -0.45% in its top 10.
“AIEQ has been diversifying its holdings in a host of industries and putting most of its capital to work. That’s in contrast to this past September, for example, when it placed more concentrated investments in well-known companies amid that choppy month for U.S. equities. This latest approach reflects the current positive investment environment with the S&P near record highs,” says Rabe"....
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