Ai Funds launched its first ETF, the Ai Funds High Conviction US Equity AI-Managed ETF (HIAI), on the Cboe BZX Exchange under the ticker BATS:HIAI. The actively managed, non-diversified fund uses Ai Funds’ proprietary BAILA AI Investment Model to select approximately 40 to 60 stocks from the 1,000 most liquid U.S. equities. BAILA reviews the portfolio weekly, drawing on more than 30 years of market history, Bayesian probability, machine learning and portfolio optimization to determine holdings, position sizes and overall market exposure. It can increase equity exposure when conditions favor stocks or move toward cash when risk rises. Ai Funds said BAILA has powered strategies used by financial advisers since 2019 and oversees or supports strategies representing hundreds of millions of dollars in assets. Milliman Financial Risk Management, LLC, which had $273.2 billion in global assets under management and advisement as of June 30, 2026, serves as sub-adviser. HIAI joins a growing active-ETF market: active funds represented roughly 80% of new ETF launches in the first half of 2026. Unlike ETFs that invest in companies developing artificial intelligence, HIAI uses AI to make portfolio decisions, although its ability to outperform or reduce downside risk remains untested in live ETF trading.