Wall Street's Irony? One Of The Oldest AI-Powered ETFs Fails To Capitalize On AI-Driven Market Rally
Portfolio Pulse from Bhavik Nair
The AI-Powered Equity ETF (AIEQ) is lagging behind the S&P 500 and Nasdaq Composite in year-to-date returns, despite the market rally being driven by AI-based stocks. AIEQ has gained 2.4% in 2023, while the S&P 500 and Nasdaq have gained over 8% and 20%, respectively. The ETF's top holding is Palantir Technologies (PLTR), but it does not own popular AI stocks such as Nvidia (NVDA) and Microsoft (MSFT).
May 24, 2023 | 7:04 am
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NEUTRAL IMPACT
Alphabet (GOOG) is among the top 10 holdings in the AI-Powered Equity ETF (AIEQ), which is underperforming the S&P 500 and Nasdaq Composite.
Alphabet's presence in the AIEQ portfolio does not directly impact its stock price in the short term. However, the ETF's underperformance could indicate a need for adjustments in its holdings to improve performance.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 40
NEUTRAL IMPACT
Alphabet (GOOGL) is among the top 10 holdings in the AI-Powered Equity ETF (AIEQ), which is underperforming the S&P 500 and Nasdaq Composite.
Alphabet's presence in the AIEQ portfolio does not directly impact its stock price in the short term. However, the ETF's underperformance could indicate a need for adjustments in its holdings to improve performance.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 40
NEUTRAL IMPACT
Microsoft (MSFT) is not included in the AI-Powered Equity ETF (AIEQ), which is underperforming the S&P 500 and Nasdaq Composite.
Microsoft's absence from the AIEQ portfolio may be a contributing factor to the ETF's underperformance. However, this does not directly impact MSFT's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 40
NEUTRAL IMPACT
Nvidia (NVDA) is not included in the AI-Powered Equity ETF (AIEQ), which is underperforming the S&P 500 and Nasdaq Composite.
Nvidia's absence from the AIEQ portfolio may be a contributing factor to the ETF's underperformance. However, this does not directly impact NVDA's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 40
NEUTRAL IMPACT
Palantir Technologies (PLTR) is the top holding in the AI-Powered Equity ETF (AIEQ), which is currently underperforming the S&P 500 and Nasdaq Composite.
While Palantir is the top holding in AIEQ, the ETF's underperformance may not directly impact PLTR's stock price. However, it could indicate that the ETF's portfolio may need to be adjusted to include other popular AI stocks to improve its performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The AI-Powered Equity ETF (AIEQ) is underperforming the S&P 500 and Nasdaq Composite, despite the market rally being driven by AI-based stocks.
AIEQ is underperforming the broader market indices, which is surprising given the market rally is driven by AI-based stocks. The ETF's portfolio does not include popular AI stocks such as Nvidia and Microsoft, which could be a reason for its underperformance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100