Can You Invest Smarter Than Watson? Here Is An Artificial Intelligence Powered ETF!

For the past number of years I have worked to find quantitative or technical models that will improve portfolio performance and, if possible, reduce risk.  That has helped us develop the charting tools, trend management and risk on risk off ratios we currently use.

This week I found a very new ETF, AIEQ, that is powered by IBM's Watson Artificial Intelligence and is a cognitive computing platform that answers investment questions by connecting large amounts of data.  It continuously learns.

The fund is expensive at .75%.

The fund is very new, so I do not have many of my normal charts and correlation data.

The fund reviews data daily and makes frequent changes.

The fund will use any of over 6000 areas to invest, including, large cap, mid-cap, small-cap, foreign, currencies, treasuries, preferred stock, and warrants.

It selects between 30 and 70 holdings that derive an optimal risk adjusted mix and looks for opportunities for long term capital appreciation.

It discloses holdings daily.

It removes human emotion, bias and errors.

Conceptually, I love it.  

I do not know if it will work.  Considering something so new is out of the ordinary for us.

All of that said.  I am excited about AIEQ.  It is like having a smart hedge fund, but we are not paying 2% of the net value and 20% of the profits to the fund manager!

Hopefully, it will save us time and improve our performance.

Disclosure: We took a position in AIEQ this morning.

Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only.  Do you own diligence when investing your hard earned cash.