Canada launched the first artificial intelligence exchange-traded fund with the ticker MIND.
The Horizons Active A.I. Global Equity ETF is an investment strategy run by an AI system. The AI algorithm analyzes financial data to extract patterns in order to determine what are the best investments to make.
MIND has a management fee of 0.55% and can collect and analyze huge data sets to solve complex financial problems.
As The Global and mail reports, MIND requires minimal human interaction, and all trade executions are confirmed by specialists.
The system constantly monitors more than 50 investment indicators such as money flow, six-month relative performance, 90-day volatility, and more.
An ETF driven solely by an A.I. has the advantage of interpreting millions of market data points in seconds, and will make investment decisions free of any human emotion, in the most efficient and effective manner for its portfolio.
MIND is actually a large scale real-world experiment. Horizon, the company behind it, relies on a 10-year back-test of live investment data to allow the system to teach itself how to invest.
Moreover, the AI portfolio will be rebalanced on a monthly basis, not quarterly, in order to adjust the AI algorithm’s learning curve.
If you work in stock market, the good news is that AI won’t replace all the tasks of a portfolio manager. Human supervision is required to monitor financial events and AI’s learning curve in order to adjust it accordingly.
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