Jim Rogers Launches Artificial Intelligence ETF

June 21, 2018

Today Jim Rogers’-led Ocean Capital Advisors, in partnership with ETF Managers Group, rolled out an ETF that invests primarily in other ETFs using a methodology driven by artificial intelligence. The Rogers AI Global Macro ETF (BIKR) mainly holds a portfolio of single-country ETFs, though it can incorporate a short-term Treasury ETF when needed.

The fund comes with a total expense ratio of 1.18%, which includes 43 basis points in acquired fund fees, and lists on the NYSE Arca.

The fund’s underlying index targets single-country ETFs with the broadest exposure available. Its portfolio is determined by an AI-driven algorithm that incorporates macroeconomic data in order to project market movements over an 18-month period, although the algorithm also seeks to identify shorter-term micro-cycles, which can affect the fund’s allocations. The algorithm looks at the data on a monthly basis, according to the prospectus.

Broad Portfolio Of ETFs

This is not a narrow-based fund with a concentrated portfolio of just a few ETFs. As of early June, BIKR’s portfolio of single-country ETFs covered 39 countries, with Brazil receiving the highest representation, with a weighting of 7.15%. South Korea was the second-largest country at 4.17%, followed by Hong Kong and Mexico, at 3.96% and 3.54%, respectively, the document says.

BIKR allocates to the aforementioned short-term Treasury ETF whenever it seeks to reduce exposure to a particular country, and in early June, it had a weight of 24.65% in the underlying index, the prospectus notes.

Jim Rogers is best known as a commodity expert, with his name attached to numerous products in that space. This is the first time an equity ETF has been marketed under his name.

Contact Heather Bell at [email protected]

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