Skip to content
Home » Artificial intelligence at the service of investing with ETFs

Artificial intelligence at the service of investing with ETFs

The ‘small caps’ offer diverse investment opportunities, both in emerging and developed markets, and are also those that are ‘well-selected’ and offer greater potential for growth. Many of them are leaders in their home markets, innovative and even able to transfer price increases.

Investing in ETFs is no longer just a matter for stock market professionals, but also for the youngest. ETFs were originally a product sought after by institutional investors. Tracking stock indices with low commissions and taking tactical positions for large portfolios has been ideal for them, but other retail investors have also joined the trend.

Bankinter USA Nasdaq 100 It’s the index fund that has the highest compound annual growth of the last three years at 20.71%. Invests 100% in US large-cap stocks. The index he uses as a reference is the Nasdaq 100.

Second, we have Amundi SP 500 ESG which, as its name suggests, uses the S&P 500 ESG as its benchmark index, which is composed of the same constituents as the S&P 500 and excludes companies that do not conduct their business in accordance with environmental, social and good corporate governance principles so-called ESG criteria. The average annual return over the past three years is 18.38%.

A few days ago we had breakfast with an article whose headline read “ChatGPT creates a more profitable portfolio than the main funds.” In fact, an experiment conducted in the UK consisted of asking ChatGPT to set up an investment fund by selecting 38 companies. After eight weeks, the fund returned 4.9%, compared to an average loss of -0.8% for Interactive Investor’s top 10 funds.

These funds include some well-known funds such as Fundsmith, as well as other funds from the world’s leading managers.

Steve Weeple, Global Equities and Emerging Markets Manager at Janus Henderson, shares his market vision, ESG investment strategies and analysis of China and other emerging markets. Weeple singles out Vietnam and Indonesia for their exports, and Mexico as the major beneficiary of the China-US struggle.

After opening up its economy, China is once again becoming the engine of global growth. Paul Diggle, chief economist at abrdn, and Catriona Macnair, chief investment officer at abrdn, comment.

The abrdn Research Institute recently upgraded its forecast for real GDP growth to 6.0% in 2023 from 2.9% in 2022. In contrast to the poor forecasts for developed markets China’s economy is recovering rapidly after long shutdowns caused by the pandemic. This is confirmed by the strength of GDP in the first quarter.

“Unlike developed markets, Chinese monetary policy is and is likely to remain accommodative: interest rates are low and there may be scope for a cut,” said Paul Diggle, political economist at Aberdeen Standard Investments.

Daniel Lacalle, Chief Economist at Tressis, sheds his unique light on current economic events. Lacalle talks about the recent financial crisis in the US, the monetary normalization of the central banks, the development of oil or the sectors in which he currently sees opportunities. “Inflation of 2% per year is a very significant loss of purchasing power,” says Lacalle.

However, there are still many active managers who are selective in picking each company based on its fundamental metrics and are able to beat the stock indices. Iván Martín, President and Investment Director of Magallanes Value Investors, explains how he is managing his fund in the face of the crisis.

Alejandro Martín, fund manager at Horos Asset Management, gives Ei Premium subscribers a master class in which he shows us how to select shares for the funds he manages.

Learn how to invest and manage your assets, investing in the best mutual funds, the companies with the best long-term prospects, or real estate investment alternatives. Fund managers, independent analysts and private banking experts tell us where to invest based on the client’s risk profile.

Next master class. US business cycle. Ramón BermejoMarket strategist for investment strategies. The subscription to the independent analytics service Hello Premium includes access to master classes with experts. For only 55 euros per year (4.5 euros per month) you get daily access to the best analyzes and investment recommendations.

Leave a Reply

Your email address will not be published. Required fields are marked *