New ETF starting 10/18/17-AIEQ

[mountaintosea]

Just stumbled across this new ETF. Any thoughts?

The AI Powered Equity ETF (NYSE: AIEQ) is comprised of U.S. listed stocks and real estate investment trusts.

Home - AIEQ ETF

 

[OldShooter]

... new ETF. Any thoughts? ...

"The ETF ranks investments based on their 'probability of benefiting from current economic conditions, trends, and world- and company-specific events' and picks those with the best chance at outperformance ... " What a great idea! I wonder why nobody ever had that idea before.

I'm sure they have great backtesting results. They all do. The statistics on funds say there's a less than 15% it will beat its benchmark over 5 years and a 50/50 chance it will fail so badly that it will be shut down or merged before 10 years. Some new funds crash so badly that they are gone in a couple of years.

BTW its web site is down right now. Maybe it has already failed.

 

[mountaintosea]

I just clicked on it. It's up. I know there was that computer fund back in the 90s that crashed. Forgotten the name of it. Haven't really looked at the website yet.

 

[OldShooter]

Mutual funds fail at about a 7% rate every year according to some things I have read. For example, here is a story on the subject: https://www.cbsnews.com/news/its-getting-crowded-in-the-mutual-fund-graveyard/

 

[CoolChange]

It is on my RADAR but I have not decided if it is worth a flier yet. (I am already heavily overweighted in the USA.)

 

[Free bird]

.75 expense ratio. Some greedy human is exploiting the concept. No self respecting machine would charge that much.

 

[OldShooter]

.75 expense ratio. Some greedy human is exploiting the concept. No self respecting machine would charge that much.

They need the money to pay the hucksters and BS artists. Look at this:

ETFs: The First Robot-Managed Fund Is Beating the Market | Money

I wonder how much money they paid to have this "news" article published.

@mountaintosea: Run, don't walk, away from this.

 

[Free bird]

The new breed of fund manager accepts bitcoin.