What signal? The beloved FANG+ index fell one after another, and robot stock picking funds hurriedly dumped large technology stocks

Time:2021-12-30 Source: 964 views Trending Copy share

An artificial intelligence (AI) stock picking fund that has been underperforming the market has abandoned large technology stocks.


According to the latest filings, AI Powered Equity ETF (AIEQ) this month holdings FANG + (tracking technology industry giants NYSE index funds) in stock positions in the top 20 stocks in its holdings of only apples Company (AAPL.US). On December 1, Microsoft (MSFT.US) was the ETF’s number one holding stock, Google (GOOG.US)’s parent company Alphabet and Amazon (AMZN.US) ranked third and fourth respectively; currently, the fund has These three stocks have been lightened.

Zhitong Finance APP learned, according to media collecting the data , the fund this year, lagging behind the S & P 500 Total Return Index (S & P 500 total return Index ) 9 percentage points.

DataTrek Research co-founder Jessica Rabe said: "AIEQ continues to reduce its holdings of large technology stocks. There is no large technology stock in the top ten holdings. The only relevant topic in the top ten of the list is cyber security. Other areas include cloud Everything from computing and commercial real estate to the medical equipment and semiconductor industries."

This change in holdings shows that the "manager" of the artificial intelligence fund (a computer model that runs around the clock) does not believe that the US technology giant will lead the market higher next year. The NYSE FANG+ Index, which measures large technology stocks, is down about 7% from its historical high in November last year, even though the S&P 500 index hit a new high.

According to data collected by the media, the chip manufacturer AMD (AMD.US) and the network security solution provider Palo Alto Networks (PAMW.US) are now the main investment targets of the fund.

The scale of AIEQ is 170 million U.S. dollars, and the quantitative model behind it evaluates more than 6,000 U.S. listed companies every day. The fund selected 30 to 70 stocks from millions of regulatory filings, news reports, management profiles, popularity indicators, financial models, valuations, and a small amount of market data.

AIEQ was launched in October 2017 and has achieved a total return of approximately 66% since its establishment. The total return of the S&P 500 Total Return Index during the same period was 102%.

Rabe pointed out that, given the novel method of AI stock selection fund selection and solid track record, tracking AI-led fund holdings is a useful task for human fund managers. Rabe said: "AIEQ has been diversifying its holdings in multiple industries and putting most of its capital into operations. As the S&P 500 is nearing its all-time high, this latest investment strategy reflects the current positive investment environment. ."

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