AIEQ uses artificial intelligence to analyze and identify US stocks believed to have the highest probability of capital appreciation over the next 12 months, targeting a maximum risk-adjusted return relative to the broader US equity market. Starting with an initial universe of US stocks (including SPACs and REITs), the fund utilizes a proprietary, quantitative model that applies AI to conduct a fundamental analysis based on up to ten years of historical data combined with recent economic and news data. The resulting portfolio consists of 30 to 200 equities of any market cap with the highest forecasted returns. The model suggests weights based on capital appreciation potential and correlation to other included companies, subject to a 10% cap per holding and 25% cap per industry. The index rebalances monthly. On January 29, 2024, the fund acquired all assets and liabilities of the AI Powered Equity ETF, which is actively managed, morphing into a new index-tracking ETF.
