Pictet Asset Management has launched the Pictet AI Enhanced Emerging Equity UCITS ETF (PQEM), bolstering the firm’s active ETF range.
The ETF was officially listed on the Xetra, Borsa Italiana and Swiss exchanges yesterday (14 October) and London Stock Exchange today (15 October).
It will aim outperform the benchmark by about 1% a year, with a tracking error of up to 2% and beta of 1%, with a total expense ratio of 0.3%. The portfolio will use Pictet’s in-house AI models to guide stock picks, overseen by Pictet’s quantitative team to remain factor neutral.
David Wright, head of quantitative Investments at Pictet Asset Management, said: “Emerging markets are a natural fit for this [AI-enhanced] approach. It is where the ability to spot complex patterns that humans cannot see can add the most value”.
The strategy aims to outperform passive strategies without dramatically increasing risk or costs, like the rest of Pictet’s AI-enhanced range.
See also: Pictet AM hires JP Morgan’s Le Léon as EMEA ETF distribution head
