AI ETFs Outperform The Market

It's Benzinga, bringing Wall Street to Main Street. A handful of exchange-traded funds managed entirely by artificial intelligence are outperforming the broader market, although their short track records and higher fees raise concerns among advisors, according to Reuters. Fewer than six ETFs managing about $30 million of the industry's nearly $17 trillion in assets rely entirely on AI for research and stock selection. A Mercer survey found that 91% of asset managers plan to increase their use of AI portfolio management tools this year. The high-conviction U.S. equity AI-managed ETF has gained 2.7% since its August launch, compared with a 1.1% increase in the S&P 500. Two AI-managed ETFs launched by FinQ in February have gained 25.35% and 23.98% respectively, outperforming the S&P 500's 11% increase over the same period. However, analysts warn that the funds have yet to prove their ability to manage risk during market downturns. For all things money, visit Benzinga.com.