FINQ’s AI ETFs Seem to Be Going Live Soon

Artificial intelligence is quickly becoming one of the most dominating forces in finance. Now, FINQ, a next-generation fintech company led by Eldad Tamir and backed by Palo Alto Networks founder Nir Zuk, is bringing that disruption directly into the ETF market. The firm has filed a preliminary prospectus with the Securities and Exchange Commission (SEC) to launch two actively managed, AI-driven large-cap ETFs, with Tidal Investments LLC serving as adviser and FINQ AI LLC as sub-adviser.

The funds are the FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (proposed ticker: AIUP) and the FINQ DOLLAR NEUTRAL U.S. Large Cap AI-Managed Equity ETF (proposed ticker: AINT). They will apply proprietary algorithms to select stocks in the S&P 500. If approved, they will trade on a national exchange. The funds are expected to be listed on a national securities exchange following the effectiveness of the registration statement and subject to applicable approvals.

But beyond the investment strategy, the filings underscore a larger debate: how regulators and investors will navigate the risks and rewards of AI in financial products.

The Mechanics Behind the Models

At the heart of FINQ’s ETF is an AI system that produces daily relative rankings of all S&P 500 companies. AIUP will go long in top-ranked stocks, while AINT will take both long and short positions to hedge against broader market movements. While FINQ’s AI system drives the stock selection, Tidal provides oversight and handles the advisor role, ensuring regulatory and operational compliance

“Our goal is to bring advanced AI capabilities to investors in a transparent, rules-based structure,” said Tamir. “These ETFs are designed to challenge conventional thinking by using technology to remove noise and uncover relative performance insights on a continuous basis.”

By structuring the products within an ETF wrapper, FINQ is leaning on one of the most regulated and transparent investment vehicles available.

Transparency as a Selling Point

One of the strongest arguments in FINQ’s favor is transparency. Unlike hedge funds or proprietary trading strategies, ETFs must publish their holdings regularly and operate under strict reporting requirements. That could ease concerns around the so-called “black box” nature of AI, giving investors a clearer line of sight into how technology is influencing portfolio decisions.

According to the CFA Institute, 64% of investment professionals are pursuing or plan to pursue skills development in AI and machine learning, signaling how the technology is being rapidly adopted across the industry. FINQ’s move, together with Tidal’s advisory oversight, brings that trend directly into a publicly listed product.

A Broader Industry Shift

The launch also reflects a broader trend: bringing institutional-grade tools to retail investors. Until now, AI-powered strategies such as daily rebalancing or long/short ranking models were largely confined to hedge funds. By placing them in ETFs, FINQ is broadening access while also subjecting them to more transparency than private vehicles.

The global ETF market surpassed $10 trillion in assets in 2024, according to ETFGI, and analysts expect AI to play an increasingly central role in the next phase of growth. For regulators, that means ETF filings like FINQ’s could become more common and more scrutinized.

The Road Ahead

Whether FINQ’s funds prove successful will depend on performance and adoption. Still, the bigger story may be what they signal: AI is moving from being a back-office engine to a front-facing feature of financial products.

That raises both opportunities and challenges for regulators, who must balance innovation with safeguards. For investors, it represents a chance to access strategies once locked behind institutional walls, albeit with risks that require careful consideration.

If approved, FINQ’s ETFs won’t just be new tickers on the exchange. They could mark the beginning of a regulatory and market dialogue about how artificial intelligence reshapes not only investing, but the rules that govern it.

Read the original company press release for full disclosure.