Motif and Goldman Sachs Launch AI-Driven ETFs

Motif and Goldman Sachs have partnered to launch new AI-driven indices for Exchange-Traded Funds (ETFs), marking a significant advancement in financial technology. Motif, a startup specializing in machine learning for investment strategies, collaborates with Goldman Sachs, a global investment bank, to leverage AI for identifying future investment trends.

Hardeep Walia, CEO of Motif, explains their unique approach: unlike traditional indices relying on human research and simple market-cap weighting, Motif uses data science and machine learning to analyze vast datasets, including patents and academic papers. This allows them to build indices based on thematic trends, offering greater diversification and capturing opportunities missed by conventional methods.

The partnership has resulted in the launch of five ETFs focused on key thematic areas identified by Goldman Sachs researchers:

1. Artificial Intelligence, Big Data, and Cybersecurity
2. Next Manufacturing Revolution (robotics, new energy, 3D printing)
3. Changing Face of Retail
4. Healthcare Industry Disruption
5. Technology Reshaping Financial Services

These ETFs aim to predict future earnings growth drivers rather than relying on market timing. Both companies will jointly market the products, with Motif sharing in the profits from Goldman Sachs' 0.5% annual management fee. This initiative provides global access to 11 markets and aligns with the rise of passive investing and younger investor demographics. Walia emphasizes the importance of leveraging modern data analytics, moving beyond traditional tools like the Bloomberg terminal. The article also includes promotional content for the TechCrunch All Stage event and lists popular related articles.

Image: The article includes an image with the caption "An image of a screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the Goldman Sachs booth." The image credits are "Richard Drew / AP".