The growing appreciation that human stockpickers struggle to outperform their benchmark indices has helped fuel a massive surge in assets held by passively managed exchange traded funds. Now some companies are hoping to show that artificial intelligence can finally give them an edge. The technology is fast-evolving but at least two fund managers, EquBot and Qraft Technologies, running dedicated AI-powered ETFs are claiming early success, even though some of their AI models' decisions might have required strong nerves to implement. For example, the team at Qraft, which offers four AI-powered ETFs, listed on NYSE Arca, witnessed its technology build a weighting of 14.7 per cent in Tesla in its Qraft AI-Enhanced US Large Cap Momentum ETF (AMOM) in August last year, but when it rebalanced a month later on September 1 it sold it all. The ETF began buying Tesla again in November, amassing a stake of 7.6 per cent by January this year, but in the February rebalancing it sold the entire holding once again.

Artificial intelligence has myriad applications and that includes some in the investment world. Some exchange traded funds are even backed by AI capabilities. The AI Powered Equity ETF (NYSE: AIEQ) is one of the original AI-powered ETFs. "The underlying fund investments in AIEQ are based on the results of proprietary quantitative models developed by Equbot with IBM Watson artificial intelligence," according to the issuer. Investment strategies rooted in technology, machine learning and related fare aren't new concepts, but simply leaving things to computers doesn't ensure guaranteed success in all market environments.

EquBot, the company behind the AI Powered Equity ETF AIEQ, 0.04% that runs on the Watson platform, is taking its artificial intelligence capabilities international with a new exchange traded fund. The AI Powered International Equity ETF AIIQ, -0.16% debuted Wednesday. AIIQ is actively managed and holds ex-U.S. developed markets stocks. EquBot launched the AI Powered Equity ETF in October. The product has gotten off to impressive start, as highlighted by its $137.63 million in assets under management.

EquBot, the company behind the AI Powered Equity ETF (NYSE: AIEQ) that runs on the Watson platform, is taking its artificial intelligence capabilities international with a new exchange traded fund. The AI Powered International Equity ETF (NYSE: AIIQ) debuted Wednesday. AIIQ is actively managed and holds ex-U.S. developed markets stocks. EquBot launched the AI Powered Equity ETF in October. The product has gotten off to impressive start, as highlighted by its $137.63 million in assets under management.

The artificial intelligence ETF is going global. The AI Powered International Equity ETF, ticker AIIQ, debuted Wednesday, according to a statement from its creator, EquBot. The exchange-traded fund is the first to use AI technology to pick stocks from developed markets outside of the U.S. It arrives about eight months after San Francisco-based EquBot's first product, the AI Powered Equity ETF, ticker AIEQ, which has gathered almost $140 million in assets. The same software that underpins AIEQ's stock selection system and runs on International Business Machines Corp.'s Watson platform will drive AIIQ. The ETF will create a portfolio of between 80 and 250 stocks -- choosing from more than 15,000 companies across the globe.