We wanted to see how our AI portfolios performed against the market. To compare, we looked at the performance of the benchmark indices from Australia and the US – the S&P/ASX 200 index and S&P 500 index:
We asked ChatGPT to create a stock portfolio using the main investment strategies and approaches used by the top 10 managed funds in Australia.
Criteria included high-quality businesses trading below their intrinsic values, high profit margins and a sustainable competitive advantage.
Following our prompts, it selected 23 stocks, mostly from the United States and many household names. ChatGPT's portfolio was diversified across sectors and included some stocks from Australia, the UK and parts of Asia.
We used the same approach with Bard as we did with ChatGPT. We asked Bard to create a stock portfolio consisting of the main investment strategies and approaches used by the top 10 managed funds in Australia.
Our criteria included high-quality businesses trading below their intrinsic values, high profit margins and a sustainable competitive advantage.
Following our prompts, it selected 19 stocks, mostly from the US and largely within the technology sectors.
To put fund managers to the test, we took the 10 most popular actively managed listed funds on the ASX as our benchmark. Popularity was rated in terms of funds under management.
Although the most popular funds in Australia are passive index funds, we also excluded these from the list because these types of funds seek to simply mimic a market, rather than outperform it.
For a fair comparison, we only included funds that offer stock portfolios and excluded any single industry thematic funds.
Funds included in our top list were the Magellan Global Open Class Units fund (MGOC), Vanguard Global Value Equity Active ETF (VVLU) and BetaShares Australia Top20 Equity Yield Maximiser Fund (YMAX). While some of these funds did individually outperform each of our competitor portfolios, the average performance of all 10 funds did not.
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I want to invest $50 ea in four stocks what is the best way to go about it?
Hi Paul,
You can take a look at our guide to buying shares to get started, and also check out our guide to the best share trading platforms.
I hope this helps,
Elizabeth