Artificial intelligence is steadily weaving its way into the fabric of financial markets, but FINQ is betting that its next leap will happen not in hedge funds or proprietary trading shops, but in the portfolios of everyday investors.
The next-generation fintech company, founded by veteran asset manager Eldad Tamir and backed by Palo Alto Networks’ founder Nir Zuk, has filed a preliminary prospectus for two new actively managed U.S. large-cap ETFs. Both funds are advised by Tidal Investments LLC and sub-advised by FINQ AI LLC. The proposed funds are:
- FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (proposed ticker: AIUP)
- FINQ DOLLAR NEUTRAL U.S. Large Cap AI-Managed Equity ETF (proposed ticker: AINT)
The funds are expected to be listed on a national securities exchange following the effectiveness of the registration statement and subject to applicable approvals.
How the Funds Work
At the core of both ETFs is FINQ’s proprietary AI model, which produces a daily relative ranking of all stocks in the S&P 500 Index.
- AIUP will focus on the top names in that ranking, taking long positions in companies the AI identifies as having relative performance strength.
- AINT will adopt a long/short approach, going long on top-ranked stocks while shorting those at the bottom. The strategy is designed to hedge against broader market moves and focus more narrowly on relative winners and losers.
“Our goal is to bring advanced AI capabilities to investors in a transparent, rules-based structure,” said Tamir. “These ETFs are designed to challenge conventional thinking by using technology to remove noise and uncover relative performance insights on a continuous basis.”
While FINQ handles the portfolio management as a sub-adviser, Tidal provides oversight and ensures regulatory and operational compliance in its role as adviser.
Breaking Down the Accessibility Barrier
Historically, tools that re-ranked equities daily or dynamically hedged exposure were the preserve of institutional players. For retail investors, such strategies were either inaccessible or cost-prohibitive.
FINQ is attempting to bridge that gap by delivering hedge fund–style analytics within an ETF framework. That means intraday liquidity, transparent holdings, and the lower operational costs that ETFs typically carry.
The move aligns with a larger shift in asset management: the democratization of advanced investment methods once restricted to the “top tier” of the market.
Timing the Market’s Appetite
The launch of FINQ’s funds arrives at a moment when actively managed ETFs are capturing significant investor interest. According to Reuters, these products hold over $1 trillion in assets in 2024, having climbed rapidly thanks to favorable regulatory shifts since 2019 that made launching active ETFs easier.
BlackRock forecasts a striking expansion in the space, projecting that global active ETF assets could surpass $4 trillion by 2030, up from approximately $900 billion as of mid-2024. This growth is expected to increase active ETFs’ share of total ETF AUM to around 16%.
Meanwhile, Barron’s reports that active ETF assets soared from just $81 billion in 2019 to $631 billion in 2024, with the category on track to hit $1.24 trillion by 2027. Although just launched, many of these funds are dominated by a few large issuers.
Collectively, these figures highlight a surging appetite for innovative ETF strategies, an opening that FINQ, together with Tidal’s advisory oversight, aims to capitalize on by introducing its AI-driven, dynamically managed equity products to the market.
The Risks Beneath the Promise
Despite the optimism, FINQ acknowledges risks. The funds could experience high portfolio turnover risk as the AI model continuously adjusts rankings, which can raise trading costs. Their non-diversified nature means outsized bets on fewer companies compared to traditional index funds. And as with any AI-driven system, much depends on the reliability of proprietary models and the quality of third-party data (Models and Data risk).
Looking Ahead
For the ETF industry, the arrival of FINQ’s funds may mark an inflection point. AI has long been a behind-the-scenes force in trading and analytics. Now, it is stepping into the spotlight, directly embedded in products available on public exchanges.
Whether FINQ’s model proves durable will depend on performance. But the bigger takeaway is clear: the future of investing involves owning technology companies and leveraging technology itself to decide what to own.
If FINQ succeeds, its ETFs could serve as early templates for how AI transitions from theory to practice in mainstream portfolios. With Tidal ensuring compliance and FINQ driving stock selection, this shift could reshape how investors think about active management in the years ahead.
Read the original company press release for full disclosure.
