Asset management FinTech startup Akros Technologies is listing an exchange-traded fund (ETF) powered by artificial intelligence (AI) – Akros Monthly Payout ETF – on the New York Stock Exchange (NYSE) under the ticker MPAY.
Headquartered in South Korea, Akros Technologies develops financial technologies for data-driven investments and explores falsifiable hypotheses with quantitative approaches powered by machine learning, according to a Tuesday (May 10) press release.
Akros already launched two indexes with administrative services with Morningstar Indexes – Akros Multi-Asset Index under the ticker symbol MPAY and Akros Total Stock Market Index under the ticker symbol RTRN.
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The indexes use proprietary data infrastructure from Akros that processes over 10TB of point-in-time data dating from 1910. The distributed computing environment also leverages AI models trained to compete with the same models used at global quantitative hedge funds.
“Akros has verified the operation and tested the performance through the launch of the indexes and in the case of the ETF that benchmarks the Akros Multi-Asset Index, it will be the first AI-driven target income ETF to have listed at the NYSE to adopt the monthly payout policy at the given target rate, ”said Co-founder and CEO Kyle Moon.
“Despite the increase in the base rate, savings for retirement remains unattractive due to a low deposit rate at around one percent. Whereas real estate investment provides an average annual rental yield of approximately two to four percent, liquidity is low and vacancy risk is high. Akros seeks to provide an effective investment solution for those looking for alternatives, ”Moon said.
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Founded in 2021, Akros was co-founded by Moon, Chief Strategy Officer Jin Chung and Chief Operating Officer Justin Gim. The startup is striving to tackle the high fees in investment products that come from dealing with multiple financial institutions.
Akros said that it plans to back these ETFs with its own capital and take “internal compliance measures that only permit employees ‘US stock investments to Akros’ ETFs to remove any potential conflict of interests.”