The fund employs advanced AI models, including OpenAI's ChatGPT, Anthropic's Claude, and Google's Gemini, which work together as its 'investment committee' under human guidance.

The investment strategy focuses on analyzing the writings and public statements of successful investors to replicate their philosophies in stock selection.

Top holdings of the LIVR ETF include major companies like Meta Platforms Inc., Nvidia Corp., and Taiwan Semiconductor Manufacturing Co.

Despite the growing interest in AI-driven ETFs, only one of the 16 such funds in the U.S. is currently outperforming the S&P 500, raising questions about the effectiveness of AI in investment.

The strategy behind LIVR was developed over the past year, during which Clinton tested various AI tools to create a portfolio that could outperform the S&P 500.

Intelligent Alpha has filed applications for four additional ETFs with the SEC and plans to introduce more funds by late 2024 or early 2025.

Intelligent Alpha has launched the Intelligent Livermore exchange-traded fund (ETF), known as LIVR, which aims to leverage artificial intelligence in investment strategies.

CEO Doug Clinton explained that while human traders execute the actual trades to minimize errors, the AI models primarily dictate the investment strategy.

Clinton believes that AI-centered funds like LIVR will shape the future of investing by combining the benefits of active and passive strategies while reducing emotional biases.

Named after the legendary stock trader Jesse Livermore, the ETF draws inspiration from the investment philosophies of renowned figures such as Warren Buffett, Stanley Druckenmiller, and David Tepper.

The ETF commenced trading recently with an expense ratio of 0.69%, and it gained 2.5% on its first day.

Looking ahead, Clinton aims to build a suite of AI-driven investment products targeting both institutional and retail investors, with a long-term goal of managing $1 trillion in assets.