"The idea is to recognize patterns across management teams, across financial statements, across news [and] things like social media, to identify trends that are occurring in the marketplace and to capture the companies that are going to appreciate the most over the next six to 12 months," he said.
The function is similar to what Morgan Stanley is using to bolster its analysts' calls. The machine behind the ETF reads through over 1 million pieces of data per day including SEC filings, earnings reports, news stories and social media posts to determine which stocks it thinks are heading higher, Amador said.
"What we care about is how the market is pricing the various companies, the various industries," he said. "So, as the data changes, news or financials might become more important. We care about what's being rewarded in the market." As time goes on, the bot gets more intelligent. When stocks including AIEQ collapsed the fourth quarter of 2018, the ETF was rebalancing and picking up high-quality names likeFor ETF experts like Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, this ETF — which counts
ETFEdgeCNBC There’s a “robot,” but the robot is programmed and monitored by a person. investing finance law
ETFEdgeCNBC There’s a “robot,” but the robot is programmed and monitored by a people. investing finance law
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