AI-Powered ETFs Have Not Shown Market-Outperforming Edge Yet

TL;DR
AI-powered ETFs have largely failed to beat broad-market indexes. Since 2017, about 16 AI-driven funds have launched, with most underperforming the Vanguard Total Stock Market ETF and several even closing; on average they lag by around 5% annually due to overtrading and higher costs. Funds like Amplify’s AIEQ and WisdomTree’s AIVL/AIVI show limited gains compared with low-cost index funds such as VTI, IVLU, or VTV. While AI models are improving and may eventually offer an edge, the approach remains in early stages and the safer bet for most investors is a low-cost index fund rather than stock-picking AI ETFs.
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