Bridgewise, the financial research intelligence platform for global securities, has announced the launch of an innovative analysis solution for exchange-traded funds (ETFs) and mutual funds, powered by artificial intelligence (AI).
This development will provide in-depth insights into thousands of funds, a feat that has not been practically possible before due to the number of assets involved.
The new platform offers analysis of 12,000 global ETFs and mutual funds in multiple languages. Capitalising on AI-powered technology, it enables detailed examination of the performance of individual equities within a fund. This expansion of coverage overcomes the traditional limitations of fund analysis, where the sheer volume of individual equities made comprehensive scrutiny unfeasible for investors.
"Until now, fund analysts have faced a daunting challenge," said Gaby Diamant, Co-Founder and CEO of Bridgewise. "There is no way for a human to provide a detailed fundamental analysis on each and every asset in popular funds, especially when some funds are composed of thousands of individual stocks. The time it would take to complete such an analysis would quickly stretch to a full year or more."
The company leverages dual AI technologies – machine learning analysis and a custom Micro Language Model (MLM) – to dissect funds into their constituent assets. This detailed analysis is complemented by AI-powered buy/sell recommendations, ensuring that users receive comprehensive insights along with actionable advice.
As part of its foray into the funds market, Bridgewise has enlisted Deborah Fuhr, a notable researcher and founder of ETFGI, to its advisory board. Fuhr mentioned that ETFs are gaining traction among retail investors and financial advisors globally due to their transparency, cost efficiency, and diversified exposure.
"Bridgewise is developing a solution to fill a growing need for detailed information about mutual funds and ETFs to allow retail investors to make fully informed decisions," she added.
The new platform aims to enhance the investment experience by providing interactive elements and contextual ratings. Investors can delve into holdings analysis, offering insights on sector and country distribution, alongside exposure factors. Another feature, the Alternatives Analysis, facilitates comparisons of alternative funds, helping investors make well-informed choices. A Stand-out feature of the platform is its regulated buy/sell recommendations for each security it analyses.
Bridgewise's initiatives coincide with a rising trend in investments in the ETF sector.
According to their reports, assets in the global ETF industry rose by 10.8% year-to-date in 2024, reaching USD $12.89 trillion, up from USD $11.63 trillion at the end of 2023. However, less than 20% of global securities are currently covered by professional analysts, highlighting the necessity of such an AI-powered solution.
Fuhr commented on the industry’s growth by noting, "ETFs are increasingly gaining popularity with retail investors and financial advisors around the world, providing simple, liquid, transparent, cost-efficient, diversified exposure to global markets, regions, countries, and themes."
"At the end of May, our research reported the global ETFs industry has had 60 months or 5 years of consecutive monthly net inflows and the assets invested in the global ETFs industry reached a record of USD $12.89 trillion."
The new fund analysis solution from Bridgewise is set to roll out to users over the course of July, with the company expressing confidence that it will enable a significant step forward in helping investors make more informed decisions.
