AI ETF That Aims to Invest Like Buffett Picks META, NVDA

Intelligent Alpha's LIVR ETF is programmed to invest like financial legends.

A new ETF is aiming to differentiate in an increasingly cluttered industry with a strategy that relies on artificial intelligence to replicate the investment practices—and hopefully successes—of financial greats like Warren Buffett and David Tepper.

Intelligent Alpha, a Minneapolis-based investment management affiliate of Deepwater Asset Management, has launched its first ETF, the Intelligent Livermore ETF (LIVR). The fund gained 2.5% Wednesday afternoon, its first day of trading.

LIVR is developing investment strategies by using three large-language AI models, including ChatGPT, Claude and Gemini, collectively representing the “investment committee.” It's top holdings include Meta Platforms Inc., Nvidia Corp. and Taiwan Semiconductor Manufacturing Co.

Doug Clinton, Intelligent Alpha’s founder and chief executive, said the idea for LIVR was developed over the past year when he started experimenting with various AI platforms to replicate investments strategies.

The objective of the strategy is to AI to replicate the personalities and philosophies of some of the world’s most renowned investors, including Warren Buffett and David Tepper.

LIVR Top 5 Holdings

Source: Intelligent Alpha

Clinton said the strategy relies on writings, public statements and public filings to construct the respective investment philosophies “to show how they might think right now.”

“Then we feed it a data set of stocks, and have it analyzed with the philosophy and mindset of those investors,” he explained.

LIVR, which has an expense ratio of 69 basis points, is not the only ETF leveraging AI in the pursuit of investment alpha, but Clinton said Intelligent Alpha is the only investment firm “built entirely from the ground up to use large-language models that are able to speak and communicate on a wide range of general topics just like a human.”

While LIVR is the first, Clinton said there are four other AI-powered ETFs already filed and slated for launches over the next three-to-six months.

Those strategies include a technology-focused ETF, a small-cap, large-cap and an ETF named Omaha, which is the value-investing tribute to Buffett.

And, while this is the first ETF from Intelligent Alpha, Clinton said he has some experience in how the ETF space works through a licensing agreement for the Deepwater Frontier Tech Index, which is tracked by the Innovator Loup Frontier Tech ETF (LOUP).