Mirae Asset Management announced on January 18 that it will launch 'Mirae Asset AI Smart Beta Fund' and 'Mirae Asset AI Smart Beta Market Hedge Fund' to invest in various Smart Beta listed index ETFs and large-cap stocks based on AI and retail them via Mirae Asset Daewoo.
Deep learning technology was applied to artificial intelligence used in the fund. The advanced technology minimizes errors by learning a variety of information that is thought to affect the investment market such as economic indicators and stock information through neural networks, compiling primary portfolios and comparing them with secondary optimal ones.Artificial intelligence linked to deep learning technology will continuously adjust the proportions of investment by assets by taking into account changes in economic and market conditions, valuations, and supply and demand.
Smart Beta ETF, the main investment target, combines the advantages of an active strategy that can beat the market in the mid to long term and a passive strategy’s advantages -- low cost and transparency.
Unlike traditional market cap indexes, Smart Beta ETF pursues generating excess profits through its proven strategy in the global market. Typically, there are a lowball strategy that invests in low-volatility stocks, a quality-value strategy that invests in undervalued stocks, and a high-dividend strategy that invest in stocks with high dividend yields.
Mirae Asset Management established Korea's first artificial intelligence-based finance research center together with Korea University’s Complex Data Laboratory and financial solution developer Craft Technologies in October last year and since then, has been studying how to apply deep learning to investment via artificial neural networks.
"Mirae Asset AI Smart Beta Fund is a result of the first artificial intelligence-based financial research center in Korea,” said Seo Yoo-seok, president of Mirae Asset Management Co. “We expect it to greatly contribute to the vitalization of the investment solution market based on artificial intelligence."