Suzanne McGee at Reuters wrote about a small group of exchange traded funds that hand stock picking entirely to AI models, and asked me how advisers see them.
The category is still tiny. Fewer than half a dozen ETFs, together managing about $30 million of an industry with nearly $17 trillion in assets, rely solely on AI-powered bots for everything from research to stock selection. Fund backers argue that AI can process far more data than any person and strip emotion and cognitive bias out of the process. Reuters also cited a Mercer survey in which 91% of asset managers planned to use more AI-based portfolio tools this year while they work out which tasks can safely be handed off.
My view was that advisers are comfortable with AI that informs a decision and uneasy with AI that makes it. I also told Reuters that my clients are not clamoring for these funds.
The story noted that advisers and analysts have concerns about the short track records and higher fees of AI funds, which are good reasons to look closely before treating any of them as a core holding.
Read the full article at Reuters →
