Finance AI

S&P Global to Launch First AI-Powered Sector Rotation Index

The new S&P 500 3AI Sector Rotator Index will use machine learning to predict and select top-performing sectors.

Olivia Sharp 2 min read 673 views
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S&P Dow Jones Indices announced a new index that uses a machine learning model to analyze market signals and actively rotate investments into top-performing sectors.

A New Approach to Indexing

S&P Dow Jones Indices announced plans to launch the S&P 500 3AI Sector Rotator Index. This new benchmark represents a significant evolution in the use of artificial intelligence in finance. Instead of simply tracking a basket of AI-related companies, the index will use a machine learning model to actively select which market sectors to overweight.

The index will use predictive analytics from the firm 3AI to analyze market signals and forecast performance. At each rebalancing, the index will adjust its holdings to overweight the three sectors the model predicts are most likely to perform …

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