Tuesday, May 30, 2023

Artificial Intelligence at the Service of Investing Through ETFs… The End of Active Management?

‘Small Caps’ offer a variety of investment opportunities for both emerging and developed and are also those that are “well chosen” offering greater potential for growth. Many of them are leaders in their home markets, innovative and capable of transferring value addition.

Investing in ETFs is no longer just a matter for stock market professionals, but even the youngest of people. ETFs were initially a product in demand by institutional investors, finding it ideal for them to mimic low-commission stock indexes and take strategic positions for large portfolios, but other individual investors have joined the trend as well.

Bankinter USA Nasdaq 100 is the index fund with the highest compound annual growth in the last 3 years at 20.71%. Invests 100% in large market capitalization US equities. The index it uses as a reference is the Nasdaq 100.

In second place we have the Amundi SP 500 ESG which, as its name indicates, uses the S&P 500 ESG as its reference index, which is made up of the same values ​​as the S&P 500, except it does not include those companies. which do not conduct their business according to the rules. environmental principles, social and good corporate governance, the so-called ESG criteria. Its compound annual return in the last 3 years has been 18.38%.

A few days ago we had breakfast with an article titled “ChatGPT makes for more profitable portfolios than core funds”. Indeed, in an experiment conducted in the United Kingdom, ChatGPT was asked to select 38 companies to form an investment fund. After 8 eight weeks, the fund had returned 4.9%, compared to an average loss of -0.8% for Interactive Investor’s top 10 funds.

These funds include some renowned as Fundsmiths, as well as other funds from the world’s leading managers.

Steve Weiple, manager of global equities and emerging markets at Janus Henderson, explains his market outlook, his ESG investment strategies, and his analysis of China and other emerging economies. Veepal highlighted their exports to Vietnam and Indonesia and Mexico as the great beneficiary of the conflict between China and the US.

China has once again become the engine of global growth after the opening up of its economy. Paul Diggle, chief economist and Catriona McNair, chief investment officer, abrdn, weigh in.

The abrdn research institute recently raised its forecast for real GDP growth from 2.9% in 2022 to 6.0% for 2023. From the strength of GDP in the first quarter.

“Unlike developed markets, Chinese monetary policy is expansionary and is likely to remain that way: interest rates are low and there may be room to lower them,” says Paul Diggle, political economist at Aberdeen Standard Investments.

Daniel Lacalle, Chief Economist at TRACES, reviews current economic events from his own unique perspective. Lacalle talks about the recent financial crisis in the United States, the monetary normalization of central banks, the development of oil or the sectors in which he sees opportunities at the moment. “Inflation of 2% per year is a very significant reduction in purchasing power,” Lacalle says.

However, there are still many active managers who selectively pick each company based on their fundamental ratios and who are able to outperform the stock index. Evan Martin, president and investment director at Magellan’s Value Investors, explains how he manages his funds in times of crisis.

Alejandro Martin, Fund Manager at Horos Asset Management, gives a master class to EI Premium clients where he shows us how he selects stocks for the funds he manages.

Learn how to invest and manage your money, invest in the best investment funds, companies with the best long term prospects or real estate investment options. Fund managers, independent analysts, private banking experts will give us their perspective on where to invest based on the risk profile of the client.

Next master class. US business cycle. Ramón Bermejo, Market Strategist for Investment Strategies. Subscription to the independent analysis service EI Premium includes access to master classes with experts. For only 55 Euro per year (4.5 per month), you will have access to the best daily analysis and investment recommendations.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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