Mirae Asset Global Investments announced on the 18th that its U.S. exchange-traded fund (ETF) management subsidiary 'Global X' has launched its first AI-based product, the 'Global X Investment Grade Corporate Bond ETF (GXIG)' in collaboration with the AI specialist firm 'Wealthspot.'
GXIG selects investments based on analyses from an AI model. It establishes a pool of investments categorized by sector, credit rating, and maturity, based on the reference index 'Bloomberg U.S. Corporate Bond Index.'
Mirae Asset Global Investments explained that the U.S. corporate bond market is vast and liquid, making it suitable for applying AI models due to institutional investors being central to price formation. However, AI model-based management strategies have not become common in the ETF market until now.
GXIG employs a composite model to select investment targets. The first model is a factor investment model based on traditional and systematic principles. It selects quality corporate bonds based on fundamental financial analyses and macroeconomic conditions accumulated over decades, similar to how quality stocks are selected.
The second model utilizes AI and presents new investment perspectives that traditional models have yet to identify. The AI model used by GXIG is designed to understand the relationships between key variables and learn contextual information autonomously.
The active ETF GXIG can flexibly adjust sector weights, duration, and credit rating distribution according to market conditions. Mirae Asset Global Investments expects that this will allow it to proactively capture investment opportunities and respond to risks even in phases of increasing interest rate volatility and market uncertainty. Additionally, the management team will address unstructured risks that AI models may find difficult to detect, such as specific market or corporate situations.
Lee Jun-yong, vice president of Mirae Asset Global Investments, said, 'GXIG is expected to bring about a new change in the ETF market based on AI models and the experience and know-how of our management team, and it will serve as an important stepping stone for Mirae Asset's AI business to take a significant leap forward.'