Artificial intelligence and machine learning might be the next frontiers for Exchange-Traded Funds

(Head Topics) Artificial intelligence and machine learning could be the next frontier for ETFs to outperform the market.

"The technology's been around for years," Tull said. "It's just never moved into the asset management space, so [it's about] getting data collected, running permutations against it and then really focusing on the best of the best selection that's diversified."

Smart beta involves the use of a rules-based system, or a series of factors, for selecting investments to include in a fund's portfolio. These funds are governed by a specific set of rules and are typically weighted differently from the traditional market cap-based weighting scheme.

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