HSBC launches AI based index

called AiMAX, a rules based manager of multiple ETFs. Utilising IBM’s Watson, initial backtesting shows The Bot delivered positive reruns with relatively low volatility. Web site is about a five minute read, with additional resources for the deep dive.

Comment: while interesting this isn’t new, AIEQ has been trading since October 17th, 2017, and also uses Watson. One issue with both AiMAX and AIEQ are fees, running at 75 and 80 basis points respectively. So a little pricey when there is no shortage of zero cost funds. Every quarter I review AIEQ’s performance, comparing it to The S&P 500; I’ll start to look at AiMAX as well.

AIEQ’s particulars below.

AIEQ Total Return Level data by YCharts