We Asked ChatGPT to Make a Market-Beating ETF. Here’s What Happened

What happens when you ask the hottest AI tool in the world to design an ETF that can beat the US equity market? It tells you the same thing every frustrated stock manager does.

In a bid to see how close technology really is to replacing Wall Street’s army of analysts, experts and money runners, we challenged ChatGPT, the artificial intelligence tool that’s taking the internet by storm, to create us a winning portfolio for the US stock market.

The result: A classic exercise in fence-sitting, with the tool explaining that the market is too unpredictable to design such a fund, while warning about the need to pick investments aligning with our goals and appetite for risk-taking.

Here was the full response when we instructed ChatGPT to “design an ETF to beat the US stock market and tell us what stocks are in it.”

Score one for the humans. It seems for all the hype, AI still isn’t quite ready to conquer the stock-picking world.

On the other hand, perhaps ChatGPT does know the secret to beating the market, but is intelligent enough not to give it away? There are already artificial intelligence-guided investments all across Wall Street — including in the ETF arena — and some are beating the market right now.