AI-powered stock funds believe bots can outperform humans

A small but growing set of exchange-traded funds uses AI stock-picking models end-to-end, aiming to outperform human-managed strategies while acknowledging many investors still distrust or fear AI. Fewer than half a dozen such ETFs manage about $30 million out of roughly $17 trillion in total ETF assets. Still, Mercer’s survey found 91% of asset managers plan to increase AI-based portfolio management tools this year, including deciding which tasks can be safely delegated. The article cites track records from several AI-managed funds: Ai Funds’ High Conviction US Equity AI-Managed ETF gained 2.7% since its Aug. 21 launch, beating the S&P 500’s 1.1%. FinQ’s ETFs launched in February have also outperformed, while analysts warn that short histories and above-average fees may limit demand.