Horizons starts up its self-driving ETF

Made-in-Korea AI strategy embarks on its real-life test.

Rudy Luukko 6 November, 2017 | 6:00PM

Can artificial intelligence outperform a flesh-and-blood money manager? That remains to be seen, with Horizons ETFs Management (Canada) Inc. launching what it is billing as the first global equity ETF of its kind in the world. Horizons Active A.I. Global Equity, a fund of funds holding a portfolio of ETFs, made its debut on Nov. 1 on the Toronto Stock Exchange. It trades under the cleverly chosen symbol "MIND."

There's nothing new about providing one-stop shopping for investors who don't want to build or manage ETF portfolios themselves. That's the core service provided by robo-advisors and by professional ETF strategists. Nor is there anything novel about actively managed ETFs that rely on quantitative methodologies and computer programs. such as those based on strategic-beta indexes.

What is different about this innovative Horizons ETF is the extent to which securities selection will be left to the discretion of sophisticated software. The artificial brain behind this ETF not only factors in a host of metrics but also makes decisions as to how to apply them.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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