It goes without saying that technology has changed our lives beyond recognition. It has brought decisive advantages to investors as well.
Indeed, investing in technology has been in vogue since the appearance of the first electronic stock exchange, the NASDAQ. The Financial Technologies (FinTech) industry has come a long way since then. It is not only improving the current financial system by incorporating transparency and automation but also helping investors in making decisions.
Evolution of Technological Investments
NASDAQ is the first stock market in the United States to trade online. Initially, NASDAQ was only a so-called quotation system and was not popular with brokerages. However, now it has automated trading systems which attract new growth companies such as Microsoft, Apple, Dell, Cisco, and Oracle.
We are talking about several technologies investing in making your life easier and more financially secure. These are Artificial Intelligence, Machine-Learning and Information Services, ETF and Index Funds, and Copy Funds.
How are Technological Companies Increasing the Efficiency and Profit for Investors?
We would also like to say a couple of words about ‘robo-advisors‘; which is the most popular technological investment right now. ‘Robo Advisors’ are automated programs that provide investment advice to traders.
Because robo advisors can monitor currency around the clock, they are particularly loved by cryptocurrency traders. They usually choose one of the best performing robo advisors existing now on the market. Although robo advisors are in fashion, other technological alternatives discussed in this article are equally advanced and can become a profitable investment in the near future.
As mentioned above, Artificial Intelligence stocks are highly profitable now. The best investments can be reaped from Amazon Inc., whose AI-backed virtual assistant Alexa and VA attract buyers and record increased sales. Amazon’s stocks are steadily climbing up, presently sold at $1,962.46.
Furthermore, what is also attractive about Artificial Intelligence technology is that, like the robo-advisor, it can help you make financial and investment decisions.
Selective Investment Using Artificial Intelligence
A good alternative to the robo-advisor is Artificial Intelligence or AI.
For instance, the firm called BlackRock launched last year the suit of ETFs: christened iShares Evolved.
It consists of seven sector funds trading on the Cboe BZX Exchange: Technology ETF (IETC), Consumer Staples ETF (IECS), Discretionary Spending ETF (IEDI), Financials ETF (IEFN), Healthcare Staples ETF (IEHS), Innovative Healthcare (IEIH), and Media and Entertainment (IEME).
Another innovative feature of the company’s ETFs is that their new way to classify companies foresees where they are heading for in the future instead of relying on their history. The traditional way of classifying companies pigeonholed every company within a single sector, which complicated the job of investors.
Investors could invest in a technology sector fund that could have no exposure to Amazon. BlackRock’s new classification offers more choices to investors, encouraging them to think more broadly about sectors and businesses.
Machine Learning Providing Comprehensive Analysis of Markets
Other companies combine their technology with machine learning and information services. A good example of this combination is afforded by a company called Morningstar, a global financial services firm founded in 1984. The company’s latest innovation is the Morningstar Quantitative Rating is based on complex machine learning algorithms.
The Morningstar Quantitative Rating is designed to provide an assessment of a fund’s future ability to outshine its competitors or a relevant benchmark on a risk-adjusted basis over a full market cycle. What is crucial to understand with regard to the company’s innovation is that there are no human financial analysts involved in the process. The assessment is done exclusively by the machine.
If you do not have enough time to study stock markets or learn about investing, the technologies discussed here can help you make profitable automated investments. They give you sophisticated tools to adjust your risk appetite and greatly improve your financial situation.