Growing demand for more detailed information on exchanged-traded funds (ETFs) and mutual funds among investors has led to the use of artificial intelligence (AI) for new fund analysis solutions.

In recent years, the huge volume of data that investors have to go through to analyze and identify which ETF and/or mutual fund is appropriate for them, along with the rapid development of AI technology, has resulted in a new generation of AI-supported platforms for investors’ use.

In response to this challenge, Bridgewise, an Israeli-founded start-up platform that provides AI generated reports and on-demand analysis of any financial instrument, has launched a fund analysis platform powered by AI, including machine learning and advance language models.

The platform will, for the first time, enable deep analysis of fund holdings, past performance, and fee structure while providing coverage for almost 90% of the funds in the market, says Gaby Diamant, co-founder and chief executive officer of Bridgewise.

“Until now fund analysis has faced a daunting challenge. There is no way for a human to provide 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 analysis could stretch to a full year or more,” Diamant says.

This challenge is particularly true for ETFs which have become very popular among institutional and retail investors in recent years.

“ETFs are increasingly gaining popularity with retail investors and financial advisers around the world, providing simple, liquid, transparent, cost efficient,” says Deborah Fuhr, managing partner and founder of ETFGI, who was recently appointed to the board of directors of Bridgewise.

The new fund analysis solution will feature interactive elements, contextual ratings, and other features designed to help investors find investment opportunities, including: 

• Holdings analysis, which provides detailed insights into every underlying asset and how fund holdings are distributed across sectors, countries, exposure and other factors.
• Alternative analysis, which enables interactive comparisons of alternative funds, making it easy for investors to choose the funds that are appropriate for their requirements.
• Buy and sell recommendations for every security based on Bridgewise analysis and regulatory compliance.
• Category benchmarks that give context to standard industry metrics through graded comparisons to category benchmarks to help investors of any experience level.
• Asset discovery, which guides investors to additional underlying assets from within the fund, enabling them to pursue additional opportunities.

The AI platform is being used by Japan Exchange Market Innovation & Research, Inc. (JPXI) for analysis of stocks listed on the Tokyo Stock Exchange.

Bridgewise recently secured US$21 million in new funding to support the global expansion of its AI-powered financial intelligence platform for global securities.