These are the top 10 holdings of the AI-driven investment fund powered by Watson that has been crushing the market this year

Matthew Fox
Updated ·3 min read
Artificial intelligence robot
Paulina Kappen, a student of research, development and management in social work at the Kiel University of Applied Sciences, demonstrates the capabilities of a robot used to care for dementia patients, in Hamburg, Germany, November 21, 2019.Axel Heimken/dpa/Getty Images

  • The AI Powered Equity ETF has doubled the performance of the S&P 500 so far in 2023.

  • The strong outperformance comes as investors grow more interested in artificial intelligence after the release of ChatGPT.

  • These are the top 10 holdings in the AI Powered Equity ETF that's driven by IBM's Watson.

Artificial intelligence has been all the rage among investors this year after the successful release of ChatGPT late last year sparked a craze among consumers and companies.

One ETF has been utilizing aspects of artificial intelligence to drive its investment decisions since its launch in 2017: the AI Powered Equity ETF.

With $120 million in assets under management, the ETF has had a great start to 2023, posting year-to-date performance of about 14%. That's about double the S&P 500's year-to-date return of 7%.

The AIEQ ETF is actively managed and powered by IBM's Watson supercomputer. The fund utilizes machine learning, sentiment analysis, and natural language processing to pick the stocks in its portfolio. The portfolio analyzes companies via four quadrants, which include financial analysis, news, management, and macro.

According to DataTrek Research, the ETF is currently fully invested, as it holds just 0.2% in cash and 151 individual stock positions.

"These moves seem to reflect the algorithm's conviction in the continuation of a broad-based US equity market rally," DataTrek co-founder Jessica Rabe said in a Tuesday note. "Given current valuations, the US equity market is not expecting an economic contraction and nor is AIEQ, just based on its current stock picks."

These are the top 10 holdings in the AI Powered Equity ETF that's driven by IBM's Watson supercomputer.

10. APA Corporation

Three oil and gas industry derricks
Three oil and gas industry derricks

shotbydave/Getty Images

Ticker: APA
% of ETF: 1.6%
Industry: Oil & Gas

9. Prudential Financial

Prudential Financial
Prudential Financial

Pedestrians pass the Prudential Insurance Company building August 10, 2004 in Newark, New Jersey. Security has been tight at the landmark Newark building since federal authorities revealed that terrorists groups had considered the building a possible target.Chris Hondros/Getty Images

Ticker: PRU
% of ETF: 1.7%
Industry: Financial Services

8. Roku

Roku 2023 TV hanging on a wall with the Roku menu on screen.
Roku 2023 TV hanging on a wall with the Roku menu on screen.

Roku

Ticker: ROKU
% of ETF: 1.9%
Industry: Streaming Platform

7. Norwegian Cruise Line Holdings

Norwegian Cruise Line's Norwegian Prima sailing by New York City
Norwegian Cruise Line's Norwegian Prima sailing by New York City

Norwegian Cruise Line

Ticker: NCLH
% of ETF: 1.9%
Industry: Cruise Ships

6. Celsius Holdings

Cans of Celsius Heat energy drinks are seen in flavors including blueberry pomegranate, inferno punch, cherry lime, and jackfruit.
Cans of Celsius Heat energy drinks are seen in flavors including blueberry pomegranate, inferno punch, cherry lime, and jackfruit.

Celsius Heat energy drinksCelsius

Ticker: CELH
% of ETF: 1.9%
Industry: Energy Drinks

5. Tesla

A Tesla car dealership in Maplewood, Minnesota.
A Tesla car dealership in Maplewood, Minnesota.

A Tesla car dealership in Maplewood, Minnesota.Michael Siluk/Getty Images

Ticker: TSLA
% of ETF: 2.8%
Industry: Electric Vehicles

4. Zoetis

Zoetis CEO Juan Ramon Alaix gives an interview following his company's IPO on the floor of the New York Stock Exchange, February 1, 2013. REUTERS/Brendan McDermid
Zoetis CEO Juan Ramon Alaix gives an interview following his company's IPO on the floor of the New York Stock Exchange, February 1, 2013. REUTERS/Brendan McDermid

Zoetis CEO Juan Ramon Alaix gives an interview following his company's IPO on the floor of the New York Stock ExchangeThomson Reuters

Ticker: ZTS
% of ETF: 3.3%
Industry: Animal Health

3. Constellation Energy

wind power windmills
wind power windmills

ZHANGJIAKOU, CHINA - JULY 02: Wind turbines are pictured on a barren mountain at Shenjing Village on July 2, 2018 in Zhangjiakou, Hebei Province of China. The installed capacity of renewable energy electricity generation in Zhangjiakou has reached 12.03 million kilowatts.(Photo by VCG/Getty Images)

Ticker: CEG
% of ETF: 3.5%
Industry: Clean Energy

2. UnitedHealth Group

A UnitedHealth Group health insurance card is seen in a wallet in this picture illustration October 14, 2019. REUTERS/Lucy Nicholson/Illustration
A UnitedHealth Group health insurance card is seen in a wallet in this picture illustration October 14, 2019. REUTERS/Lucy Nicholson/Illustration

Picture illustration of a UnitedHealth Group health insurance card in a walletReuters

Ticker: UNH
% of ETF: 3.6%
Industry: Health Insurance

1. Novavax

Novavax Coronavirus Vaccine
Novavax Coronavirus Vaccine

Dr. Rhonda Flores looks at protein samples at Novavax labs, one of the labs developing a vaccine for the coronavirus, in Gaithersburg, Maryland on March 20, 2020.Andrew Caballero-Reynolds/AFP

Ticker: NVAX
% of ETF: 4.3%
Industry: Biotechnology

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