Bridgewise Launches AI-Driven Analysis for Global ETFs and Mutual Funds
- Bridgewise's groundbreaking Fund Analysis solution enables holdings-based analysis to provide in-depth clarity on the risk and performance of funds
- The solution offers institutional investors a unique, interactive experience for exploring investment options and making informed buy/sell decisions
- Bridgewise adds Deborah Fuhr, award-winning ETF industry veteran, to its advisory board, deepening the company's network and credentials in the ETF sector
Bridgewise, the financial research intelligence platform for global securities, announced today the launch of a new fund analysis solution that will provide deeper levels of detail into funds and their underlying assets. Powered by AI, including machine learning and advanced language models, Bridgewise will enable for the first time, deep analysis of fund holdings, past performance, and fee structure, while providing extensive coverage for almost 90% of funds on the market. This enables institutional investors more accuracy for investments, and overcomes a long-standing challenge of a lack of data to analyze the risk and performance of a fund of which the underlying holdings are unknown.
As part of deepening the company's network and credentials, Bridgewise has also appointed Deborah Fuhr, managing partner and founder of ETFGI, to its advisory board. She brings close to 30 years' experience in exchange-traded funds (ETFs) and investment strategies, where her insights and strategic vision will support Bridgewise's continuous innovation and expansion.
ETFs, mutual funds, and other similar vehicles have become some of the most popular choices for investors, with ETFs seeing an impressive 24% annual growth in 2023 globally. In APAC, the ETF industry also reached new milestones in February 2024 with $846.38 billion of investments, surpassing records set in 2023. However, due to the sheer number of assets held in funds, less than 20% of global securities are covered by professional analysts. The lack of comprehensive analyses makes it challenging for investors to make proper, informed decisions.
Bridgewise's latest Fund Analysis solution is powered by dual AI technologies - machine learning analysis of the global equities it covers and a custom Micro Language Model (MLM). It is able to break down funds into their constituent assets and provide a detailed analysis of each one, as well as buy/sell recommendations. Furthermore, Bridgewise analysis can be provided in any language, helping to close barriers for global funds. This is particularly important in Asia, where diverse company structures and language barriers have deterred foreign investors.
Gaby Diamant, Co-Founder and CEO at Bridgewise, says, "Until now, fund analysts have faced a daunting challenge. There is no way for a human to provide a detailed fundamental analysis on each and every asset in popular funds, especially when some funds are composed of thousands of individual stocks. The time it would take to complete such an analysis could stretch to a full year or more. Our AI technologies not only allow for an unprecedented level of depth of fund analysis, but also nearly universal coverage of funds, each one with the same level of detailed analysis along with buy/sell recommendations for the individual stocks in the fund. This emphasizes the potential for AI to bridge the gap between available data and insightful analysis, enabling a more thorough understanding of market dynamics and investment opportunities."
Deborah Fuhr, managing partner and founder of ETFGI, says: "ETFs are increasingly gaining popularity with retail investors and financial advisors around the world providing simple, liquid, transparent, cost efficient, diversified exposure to global markets, regions, countries, themes. At the end of May our research reported the global ETFs industry has had 60 months or 5 years of consecutive monthly net inflows and the assets invested in the global ETFs industry reached a record of $12.89 trillion. Bridgewise is developing a solution to fill a growing need for detailed information about mutual funds and ETFs to allow retail investors to make fully informed decisions."
For investors, the new fund analysis solution will provide a unique experience featuring interactive elements, contextual ratings, and other features designed to help them find investment opportunities that are completely aligned with their goals. Features include:
Holdings Analysis - detailed insights into every underlying asset and how fund holdings are distributed across sectors, countries, exposure and other factors.
Alternatives Analysis - Interactive comparisons of alternative funds make it easy for investors to choose the one that is right for them.
Buy/Sell Recommendations - Bridgewise provides recommendations for every security it analyzes, and does so with the necessary regulatory compliance.
Category Benchmarks - Standard industry metrics are given context through graded comparisons to category benchmarks, helping investors of any experience level.
Asset Discovery - Investors are guided to additional underlying assets from within the fund, allowing them to pursue additional opportunities.
About Bridgewise:
Bridgewise is a global financial research technology company that powers the investment decisions of institutional and retail investors in more than 22 languages and across 15 countries, including over 50 institutional clients. Its proprietary generative AI-based technology platform has delivered over 10 million analyses, which provides comprehensive insights into global stocks and securities.
Founded in 2019, Bridgewise aims to bridge the knowledge gap in the investment world and democratize access to financial market information, providing easy to understand, comprehensive equity research that was previously exclusively available only to major financial institutions.
Its unbiased analysis, scoring and research can be seamlessly integrated into brokerage platforms and other financial institutions' infrastructures, offering instant analysis of global stocks alongside bespoke investment strategies, enabling informed investment decisions to investors of all types, worldwide.
More about Bridgewise can be found here.
1 ETFGI, December 2023
2 ETFGI, March 2024