In an attempt to tap the hottest trend with some innovation, legendary investor Jim Rogers launched Rogers AI Global Macro ETF BIKR that leverages the capabilities of artificial intelligence (AI). The fund is powered by a symbiotic relationship fostered by the multi-decade expertise of Jim Rogers and financial professionals.
BIKR in Focus
This new ETF seeks to provide investors with an optimally weighted global portfolio. It aims to outperform global, published equity indexes by tracking the Rogers AI Global Macro Index, which is developed by Ocean Capital Advisor.
The underlying index targets single-country ETFs with the broadest exposure available. Its portfolio is determined by an AI-driven algorithm that analyzes macroeconomic data, such as volatility, interest rates, productivity and gross national product, on a monthly basis to identify changing market conditions in individual countries and across the global economy. The model seeks to calculate and incorporate both longer-term trends (up to 18 months) and short-term cycles to make investment allocations mainly in single-country ETFs.
Based on this approach, BIKR currently holds 40 single-country ETFs with the largest country allocation to Brazil (6.4%), South Korea (3.9%) and Hong Kong (3.8%). It allocates 24.7% to the short-term Treasury ETF, which is added on a time-to-time basis required to reduce or eliminate exposure to a particular country.
The fund comes with a high expense ratio of 0.75% compared with many other smart beta or niche ETFs in the space.
How does it fit in today’s portfolio?
The ETF could be an intriguing choice for investors seeking to gain exposure to the rapidly evolving AI market.
AI is the simulation of human intelligence processes by machines, especially computer systems. Its popularity has been growing by leaps and bounds buoyed by massive demand for analyzing unstructured data like tweets, social media posts, photos and videos. As such, AI is touted as the next big emerging technology and companies are racing to invest in it.
