MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, September 23, 2024 An AI-Focused Startup's First ETF Lives. More Are Coming ... Backed by an institutional growth equity asset management boutique, the team at an artificial intelligence-focused startup is teaming up to launch the startup first ETF and preparing several more.
In a statement, the IA team reveals that they plan to launch more AI-powered products: some with "agile strategies," some with "alternative strategies," and some with "core strategies." LIVR's inception date was last Tuesday (September 17). As of Friday (September 23), the ETF had $3.04 million in AUM. The expense ratio for LIVR and for two of the planned ETFs, AIWB and QQAI, is 69 basis points. For the other two upcoming ETFs, ALPA and AISM, the price tag is 49bps. Clinton is the portfolio manager for LIVR, and he will also PM the other ETFs. In addition to leading IA, Clinton is also a co-founder and one of four partners at Deepwater Asset Management, a $333-million-AUM (as of December 31), Minneapolis-based firm that owns a minority stake in IA. For LIVR and the four planned ETFs, IA will use actively managed strategies powered by artificial intelligence. The IA team reveals that their investment committee's efforts are built on three large-language AI models (Claude, Gemini, and GPT). They also note that that they've been testing "dozens of strategies" for more than a year. LIVR is designed to be powered by an equal weight global large cap strategy, with stock selection "based onn major trading trends inspired by the greatest traders in the world," according to the fund's prospectus. The IA team notes that LIVR's namesake is Jesse Livermore, a famed U.S. stock trader active in the late 19th and early 20th centuries. AISM will be powered by a custom weight U.S. small cap strategy. AIWB will be powered by a custom weight global large cap strategy, focused on quality and value. ALPA will be powered by an equal weight U.S. large cap strategy. And QQAI will be powered by a custom weight U.S. large cap tech strategy. Citing his "experience in emerging technologies over the last decade," Clinton offers a prediction: "that large-language AI models will drive a trillion-dollar shift in the asset management industry from traditional passive and active portfolios to AI-powered portfolios." "However, these tools are only as competent as their wielders," Clinton states. "To be effective investors, modern AI models need adequate guidance and inputs which are different from prior machine learning approaches. Many investors who use AI provide the models with too much data, mistaking noise for signal, which degrades the value of the AI’s outputs." "Working with AI is an iterative, trial-and-error process," Clinton adds. "We feel that the technology, and our expertise at managing it, is what makes funds like LIVR truly unique." LIVR is listed on the Nasdaq, as will be the four planned ETFs, and they're all series of the EA Series Trust (fka the Alpha Architect ETF Trust). The ETFs' other service providerrs include: Practus, LLP as counsel; ACA Foreside's Quasar Distributors, LLC as distributor; Tait, Weller & Baker LLP as independent accounting firm; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as administrator, fund accountant, and transfer agent; and U.S. Bank National Association as custodian and securities lending agent. Printed from: MFWire.com/story.asp?s=67943 Copyright 2024, InvestmentWires, Inc. All Rights Reserved |
