German bank Baader debuts AI-driven eurozone ETF

Germany’s Baader Bank is set to enter the exchange-traded fund (ETF) market with an “AI-enhanced” eurozone equities ETF that will be listed on Frankfurt’s Xetra exchange.

The ETF, domiciled in Ireland, will use a holistic AI-driven stock selection model developed by Ultramarin to exceed the returns of an MSCI eurozone equity index.

The launch is anticipated later this month, pending regulatory approval from Germany’s financial watchdog. Ultramarin, which also focuses on AI-enhanced ETFs for global and US equities, already offers similar technology in three mutual funds.

Sailesh Pradhan, a Goldman Sachs executive, is on the board of the ETF’s umbrella fund, although Goldman has not disclosed its role in the development. This move by Baader follows the introduction of AI-assisted mutual funds by Lazard Asset Management and Pictet Asset Management, with WisdomTree having launched comparable ETFs in the US.

Attribution: The Financial Times.