Ai Funds Launches HIAI, Bringing the Next Wave of AI-Managed Investing to the ETF Market
HIAI is powered by Ai Funds’ disciplined, systematic, active AI Investment Model, BAILA®, which responds as markets
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SAUSALITO, Calif., Aug. 21, 2026 (GLOBE NEWSWIRE) — Ai Funds, Inc., an SEC-registered investment adviser specializing in AI-Managed investment strategies, today announced the launch of its first ETF: the Ai Funds High Conviction US Equity AI-Managed ETF (HIAI). HIAI begins trading today on the Cboe BZX Exchange.
This actively managed fund marks the introduction of the firm’s AI-Managed investing approach to the ETF marketplace. Ai Funds’ proprietary AI Investment Model, BAILA, has been powering hundreds of millions of dollars in assets overseen by financial advisors for the past several years.
While artificial intelligence has become increasingly common across numerous areas of financial services, most investment strategies, whether they’re labeled as “AI” or otherwise, still rely on either passive indexes or human portfolio managers to make investment decisions.
Ai Funds takes a different approach. Within HIAI, BAILA serves as the investment strategist, constructing portfolios and adjusting portfolio risk through a systematic process designed to respond as markets evolve.
“We believe investing is entering a new era,” said Tal Schwartz, Ph.D., CEO and Founder of Ai Funds. “For decades, investors have largely had two choices: passive indexing or active human management. We believe AI-Managed investing represents a third approach, one where an AI investment model systematically constructs portfolios, adapts to changing market conditions, and manages risk based on data rather than emotion. HIAI brings that approach to all investors through an ETF they can access via any brokerage account.”
Since 2019, BAILA has managed investment strategies used by financial advisors, analyzing more than 30 years of market history to identify market environments similar to today’s conditions. The system applies Bayesian probability and portfolio optimization techniques to determine portfolio holdings, position sizing, and overall market exposure, reviewing portfolios each week as market conditions change.
“Markets are dynamic, but many portfolios remain static,” Schwartz added. “Our objective is to create investment strategies that can adapt alongside changing markets through a disciplined process.”
The Ai Funds High Conviction US Equity AI-Managed ETF (HIAI) seeks long-term capital appreciation through a concentrated portfolio of approximately 40 to 60 stocks selected by BAILA out of the 1,000 most liquid U.S. equities. The strategy reviews portfolio holdings weekly and has the flexibility to adjust its overall market exposure as conditions change. When data favors stocks, BAILA leans in; when risk rises, it can shift toward cash.
HIAI is built to complement broad market exposure with a focused portfolio of stocks designed to outperform the S&P 500 over a full market cycle.
The strategy is designed for investors who want access to active U.S. equity exposure without having to pick individual stocks themselves, as well as for index fund investors looking to add an active sleeve to their portfolios.
For investors focused on managing risk, HIAI seeks to provide a more adaptive approach, aiming to participate in market growth while helping navigate periods of market stress.
Milliman Financial Risk Management, LLC, with $273.2 billion in global assets under management and advisement as of June 30, 2026, serves as the Fund’s sub-adviser.
“We’re just now beginning to see what AI can do for investors, but the power of these approaches should not be gated and made available only to the biggest institutions and platforms,” Schwartz said. “Our goal isn’t simply launching ETFs, it’s to help redefine how portfolios are built and managed. HIAI is just the beginning.”
To learn more, visit www.aifundsetfs.com.
About Ai Funds
Founded in 2018, Ai Funds, Inc. is an SEC-registered investment adviser (CRD# 328886) pioneering AI-Managed Investing, where the AI makes the investment decisions rather than merely assisting human managers. BAILA®, the firm’s proprietary AI Investment Model, first launched in 2019, serves as the investment strategist across our AI-Managed ETFs and investment strategies. Built on Bayesian statistics and machine learning, BAILA analyzes 30+ years of market data spanning multiple market cycles, reading market conditions and delivering fully constructed portfolios, with oversight from our investment team. Ai Funds provides model portfolios for hundreds of millions of dollars in assets across dozens of RIA firms. Our first ETF, the Ai Funds High Conviction US Equity AI-Managed ETF (HIAI), trades on Cboe BZX. For more information, visit aifunds.com.
Important Information
Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other important information about the Fund and are available at www.aifundsetfs.com or by calling (866) 262-1371. Please read the prospectus carefully before investing. There is no guarantee that investment objectives will be achieved or that return expectations will be met.
Investing involves risk, including the possible loss of principal. The Fund is new and has no operating history. The Fund is actively managed and is classified as non-diversified, which means it may invest a greater portion of its assets in a smaller number of holdings; this can increase volatility. The Fund’s use of artificial intelligence in portfolio management involves model, data, and technology risks, and there is no guarantee that BAILA’s investment decisions will produce the desired results or that the Fund will achieve its investment objective. During periods of market stress, the Fund may hold significant positions in cash and cash equivalents. ETF shares are bought and sold at market price, not net asset value (NAV), and may trade at a premium or discount to NAV; brokerage commissions may apply.
Distributed by PINE Distributors, LLC. PINE Distributors, LLC is not affiliated with Ai Funds, Inc. or Milliman Financial Risk Management, LLC.
Ai Funds, Inc. is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. BAILA® is a registered trademark of Ai Funds, Inc.
AIFDS-5839483-08/26
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