Pictet launches first European AI-enhanced ETFs

Pictet Asset Management has introduced four AI-enhanced equity index active ETFs listed on XETRA and Euronext, with planned listings on the London Stock Exchange and SIX. The tickers are PQWD, PQWX, PQUS and PQEU and the funds provide global and regional equity exposures including world, world ex‑US, US and European equities.

Each ETF targets about one percentage point of outperformance per year net of fees, while aiming for a tracking error up to 2% and a beta of 1.0 so returns move broadly with the market. Pictet said the strategy is designed to keep additional risk limited while remaining closely linked to benchmark indices.

The ETFs extend a strategy Pictet launched in March 2024 through a Luxembourg‑domiciled UCITS fund, Pictet – Quest AI‑Driven Global Equities. That fund had raised more than USD 3 billion and returned 50.0% in US dollar terms from launch through the end of May 2026, compared with a 45.9% gain for the MSCI World Index over the same period. Pictet also offers the strategy to institutional clients via segregated mandates.

Pictet said a proprietary AI model drives every stock selection for the ETFs and is paired with automated portfolio optimisation. A quantitative team oversees the process, runs quarterly training cycles for the model and monitors portfolios. The firm described the approach as factor‑neutral, seeking alpha from the AI model rather than from traditional factor bets.

Pictet stated the ETFs are intended for investors looking for modest excess return with limited additional cost and risk. The firm gave an example that reallocating 20% of a passive allocation into an enhanced‑index strategy can reduce the overall cost of the indexed portion of a portfolio close to zero.

David Wright, Head of Quantitative Investments at Pictet Asset Management, commented: “AI can spot complex patterns that humans cannot see.” The firm said the ETFs combine the AI selection engine with automated optimisation while retaining close index exposure.