An artificial intelligence (AI) system developed by researchers at the University of California, Irvine solved the Rubik’s Cube puzzle in just over one second. This type of revolutionary technology will certainly continue to keep investors interested in AI-focused exchange-traded funds (ETFs).
Per an article on UCI News, “DeepCubeA, a deep reinforcement learning algorithm programmed by UCI computer scientists and mathematicians, can find the solution in a fraction of a second, without any specific domain knowledge or in-game coaching from humans. This is no simple task considering that the cube has completion paths numbering in the billions but only one goal state – each of six sides displaying a solid color – which apparently can’t be found through random moves.”
“Artificial intelligence can defeat the world’s best human chess and Go players, but some of the more difficult puzzles, such as the Rubik’s Cube, had not been solved by computers, so we thought they were open for AI approaches,” said senior author Pierre Baldi, UCI Distinguished Professor of computer science. “The solution to the Rubik’s Cube involves more symbolic, mathematical and abstract thinking, so a deep learning machine that can crack such a puzzle is getting closer to becoming a system that can think, reason, plan and make decisions.”
In the investment space, artificial intelligence (AI) is increasingly gaining widespread attention for its ability to be a disruptive technology that spans across a variety of sectors, which makes it a viable alternative for exchange-traded funds (ETFs) opportunities. For one ETF, the AI-Powered International Equity ETF (NYSEArca: AIIQ), it’s been a year since inception and has already bested its benchmark by 7 percent.
Under the hood, the fund runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.
AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.
Whether society is ready for it or not, robotics, AI, machine learning, or any other type of disruptive technology will be the next wave of innovation. For investors who missed out on the bull market run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, they can look to capitalize on disruptive tech options in 2019 and beyond that.
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.
Another ETF to consider is the ARK Innovation ETF (NYSEArca: ARKK). ARKK is an actively-managed fund that invests in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation.
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