10 May 2023

ChatGPT's equity portfolio outperforms leading UK investment funds

According to Finder.com, a hypothetical equity portfolio made up of 38 companies selected by the ChatGPT chatbot has outperformed the ten most popular funds in the UK over an eight-week period. The AI-driven portfolio has posted a 4.93% growth since 6 March 2023, while a group of competing funds have suffered an average loss of 0.78% over the same period.

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To evaluate the performance of the portfolio created by ChatGPT, Finder.com analysts used the 10 most favored funds on the Interactive Investor trading platform as a reference point. The list included a range of UK, US and global funds from reputable financial institutions such as Vanguard, Fidelity and HSBC.

Analysts asked the ChatGPT chatbot to select stocks based on criteria such as choosing companies with a history of growth and low debt levels. The chatbot subsequently selected 38 titles, with the best-performing stocks in the portfolio including Meta, which is up nearly 30%, Microsoft, which is up 20%, and Intel Corporation, which has posted growth of nearly 18%. By contrast, over the same eight-week period, the S&P 500 index, which tracks the 500 most valuable US companies, rose by 3% and its European equivalent, the Stoxx Europe 600 index, rose by just 0.5% over the same period.

An April study conducted by the University of Florida concluded, among other things, that ChatGPT even outperforms some basic analytical models in accurately predicting stock price movements of specific companies.