Mirae Asset launches first AI-assisted financial product

The logo of Mirae Asset Global Investment's U.S. subsidiary, Global X / Courtesy of Mirae Asset Global Investments

Mirae Asset Global Investments has released its first artificial intelligence (AI)-assisted financial product to cope with a greater reliance on AI among international investors, the company said, Wednesday.

The Seoul-headquartered firm said Global X Investment Grade Corporate Bond ETF (GXIG) was developed through collaboration between its United States-based ETF subsidiary, Global X, and its AI unit, Wealth Spot.

An ETF is a collection of securities, such as stocks or bonds, that trade on an exchange like a regular stock.

GXIG selects and invests in high-demand corporate bonds based on insights from AI.

In particular, it refers to the Bloomberg U.S. Corporate Bond Index in classifying investment-worthy bonds by sector, credit rating and maturity.

The logo of Wealth Spot, Mirae Asset Global Investment's AI unit / Courtesy of Mirae Asset Global Investments

“AI-based investment strategies are still uncommon in the ETF market, despite the vast, highly liquid nature of U.S. corporate bonds,” Mirae Asset Global Investments said.

It expressed hope that GXIG thus can be a potential “game changer” and even a "killer product,” which refers to a product that is exceptionally successful and dominates its market, often to the detriment of competitors.

In formulating investment portfolios, GXIG uses both a traditional, rules-based model as well as an AI-driven model.

The traditional model identifies high-quality corporate bonds using long-established methods. This model relies on decades of accumulated knowledge in fundamental financial analysis and macroeconomic assessment to filter for investment-grade issuers.

The AI-driven model identifies complex interactions and presents new investment perspectives that traditional models may overlook.

GXIG’s AI system is designed to autonomously learn and understand contextual relationships among key variables using advanced algorithms and technology.

“We expect GXIG to introduce a transformative shift in the ETF market by combining AI model with the experience and expertise of our investment professionals,” Mirae Asset Global Investments said. “We also expect it to serve as a critical launchpad for elevating our AI business to the next level.”