Sector Level Investor Sentiment Reaches Alpha
PITTSBURGH, Dec. 6, 2022 /PRNewswire/ — StockSnips Inc has introduced a new portfolio model based on SPDR sector ETFs which, after successful backtesting, is expected to be the fifth StockSnips portfolio to deliver Alpha following the launch of the SPDR-based portfolios. shares in the last year. The SPDR Sector ETF portfolio ranks sectors by leveraging its proprietary sector sentiment signal.
StockSnips, a market leader in Financial News Sentiment Signals, has released a new sentiment-based portfolio offering in the rapidly growing model portfolio space. According to a recent Morningstar report “Model portfolios attract assets… – Model portfolios allow advisors to outsource some or all of their investment management responsibilities. This allows advisors to devote more time to other client needs and growing their practices. features attracted advisors. Over the past nine months, assets following the patterns have increased despite significant market volatility. As of March 2022, model portfolios were guiding over $349 billion in assets, an increase of 22%.
Designing and building equity portfolios to outperform benchmarks is the ongoing challenge facing portfolio managers. This is perhaps more difficult in the current era where market emotions and their underlying sentiments are generating increased turbulence in the analytical landscape. Markets are constantly impacted by frequent injections of data in the form of social media and new sources of investor sentiment and chatter.
Today, the ability to digest this widely available unstructured data and quantify it into predictive signals is the new paradigm. It is becoming imperative for asset managers to adopt new approaches, not only for portfolio results, but to provide their clients with a tailored service that sets them apart from asset managers who trade on fundamentals alone. Access to alternative data and AI platforms such as StockSnips is the breakthrough of our times, allowing businesses to dedicate the time needed to develop their core competencies and be competitive.
StockSnips has a proven track record in separating signals from noise, which is the major challenge for asset managers. Most sentiment analysis using survey methodology exists at a macro level. For portfolio managers, for sentiment to be a reliable factor in portfolio construction, it needs to be much more accurate and predictive. What is needed is a micro-sentiment, focused on the level of individual enterprise.
Ravi Koka, CEO of StockSnips, said: “We are excited to bring a portfolio model based on sector ETFs to investment advisers and asset managers, leveraging our extensive research to transform non-textual information structured into a valid signal, and a robust proxy to measure investor sentiment for This follows our successful launch last year of ticker-based portfolio models that performed well in a highly volatile environment in 2022. The results backtesting bodes well for the future use of sentiment as a factor in predicting sector rotations. , we think it’s time to get sentimental.”
Our models based on AI Sentiment are gaining more and more acceptance
In 2022, we added 5 new Registered Investment Advisors (RIAs) and our assets under management increased significantly compared to 2021. Here are some of the reasons RIAs are adopting our portfolio models:
- Stock picking is based on algorithms and a proprietary sentiment dataset that avoids human bias
- Holdings are diversified and cross-sector and not concentrated in a few mega-caps like most index ETFs.
- The decline and returns outperformed the benchmark S&P 500, even in a volatile environment like 2022
About StockSnips Inc:
StockSnips (www.stocksnips.ai) is a US-based company founded by world-class IT and financial experts. Our vision is to provide investors with easy access to sentiment analysis of stock market news. Quantifying investor sentiment trends at the firm level has become increasingly important to understanding its impact on price action, and our value lies in providing high quality portfolio models based on the AIs that leverage sentiment signals to achieve alpha. Our portfolio models have been validated for multiple investment strategies and are actively traded by investment professionals.
Media: Rebecca Wilde
Sources: Panorama of Morningstar’s 2022 model portfolio
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SOURCE StockSnips Inc.
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