VanEck has launched the first exchange-traded fund on the Australian Securities Exchange to use artificial intelligence for stock selection, marking a significant shift in how retail investors access quantitative strategies.
The new product, part of a broader fund revamp, aims to leverage advanced AI models to identify market-beating opportunities, a capability that has historically been the domain of hedge funds and proprietary trading firms.
The launch coincides with growing interest in AI-driven investment tools across the Australian market.
Recent reports indicate that Grace Capital, an Australian hedge fund, achieved outperformance against the ASX 200 over a one-month experimental period using a similar AI-driven strategy.
This success has highlighted the potential for machine learning to generate alpha in local equities, prompting asset managers to develop accessible products for a wider audience.
This development arrives as investors increasingly seek diversification away from the extreme concentration seen in major US tech indices.