Horizons ETFs Management (Canada) Inc. has announced the launch of the Horizons Active A.I. Global Equity ETF ("MIND"). The company says MIND is the “first exchange traded fund in Canada, and the first global equity-focused ETF in the world,” to use artificial intelligence for all security selection decisions.
The ETF is sub-advised by Mirae Asset Global Investments. MIND uses an investment strategy “entirely run by a proprietary and adaptive artificial intelligence system that analyzes data and extracts patterns,” stated Horizons ETFs in an announcement issued Nov. 1. The ETF may also hold cash and cash equivalents.
Global equity indices
MIND provides actively managed exposure to global equity indices, by primarily using North American ETFs. The management fee is 0.55 per cent and units in the fund began trading Nov. 1 on the TSX under the ticker symbol MIND.
Horizons says that “the machine learning process underpinning MIND's investment strategy is known as Deep Neural Network Learning – which is a construct of artificial neural networks that enable the A.I. system to recognize patterns and make its own decisions, much like how the human brain works, but at hyper-fast speeds.”
Devoid of all emotion
"MIND is expected to be able to more efficiently process market data and allocate assets than any human manager," said Steve Hawkins, President and Co-CEO of Horizons ETFs. "Unlike today's portfolio managers who may be susceptible to investor biases such as overconfidence or cognitive dissonance, MIND is devoid of all emotion. It is purely systematic in how it makes investment decisions."
