Horizons ETFs has launched Horizons Active A.I. Global Equity ETF, the first ETF in Canada and the first equity-focused ETF in the world to use artificial intelligence (AI) for investment decisions.
The ETF provides actively managed exposure to global equity indexes, primarily using North American ETFs. The management fee is 0.55% (plus tax).
The fund is sub-advised by Mirae Asset Global Investments, which uses an investment strategy run by a proprietary, adaptive AI system that extracts patterns from analyzing data.
The ETF is expected “to more efficiently process market data and allocate assets than any human manager,” says Steve Hawkins, president and co-CEO of Horizons ETFs, in a release. “Unlike today’s portfolio managers who may be susceptible to investor biases such as overconfidence or cognitive dissonance, [the ETF] is devoid of all emotion. It is purely systematic in how it makes investment decisions.”
About the AI system
The AI system applies machine learning, which constructs artificial neural networks — essentially training a computer to recognize patterns and make decisions, much like how the human brain operates. The autonomous system effectively teaches itself how to invest, and independently makes investment decisions based on past experiences.
The machine-learning process is known as deep neural network learning, designed by Qraft Technologies. Qraft is a founding member of the Mirae Asset Intelligent Finance Research Center and continues to develop AI tech that can be applied directly to financial business in co-operation with Korea University.
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