Kaiju ETF Advisors has launched an actively managed US equity ETF that leverages artificial intelligence (AI) to capitalize on short-term buying opportunities.

Ryan Pannell, CEO of Kaiju ETF Advisors.

The BTD Capital Fund (DIP US) has been listed on NYSE Arca with an expense ratio of 1.25%.

Kaiju applies its proprietary AI to a universe of US-listed stocks comprising the constituents of the S&P 500 and Nasdaq 100 with the goal of identifying short-term dips in company share prices.

The ETF rapidly buys a stock once a dip has been identified, aiming to sell the stock in short order once a potential rebound has occurred.

Due to the nature of the ETF’s strategy, the fund is expected to replace a significant portion of its holdings every day.

Kaiju’s proprietary AI capabilities account for more than 25 factors and are based on state-of-the-art machine learning techniques that leverage ongoing and emerging peer-reviewed research from academia and the financial industry.

Each of these systems is trained on more than 15 years of intra-day market data and contributes to the generation of the entry and exit signals for potentially lucrative opportunities while simultaneously determining how to control and mitigate risk.

Ryan Pannell, CEO of Kaiju ETF Advisors, said: “Buy the Dip (BTD) is a simple concept — purchase an asset when it’s oversold then sell when its value bounces back. Our proprietary algorithm is the basis for an AI that can identify authentic dips in nanoseconds. And now we’re making that technology available to everyone.

“What we’ve built takes this type of systematic trading to a new level because its goal is to identify those needle-in-a-haystack opportunities by parsing data at a rate that exceeds human ability.”

While the ETF is designed to capitalize on share price dips in any market conditions, Kaiju admits that there are likely to be fewer opportunities during market downturns.