one of the oldest artificial intelligencepowered exchangetraded funds the aipowered equity etf aieq is currently lagging behind the sp 500 and the nasdaq composite in terms of yeartodate returns at a time when the market gains are driven by aibased stocks while the ai powered equity etf has gained 24 in 2023 so far based on data available at the time of writing the sp 500 has registered over 8 gains while the nasdaq has risen over 20 in the period according to benzinga pro notably investors have loaded up on tech stocks like nvidia corporation nvda microsoft corp msft and alphabet inc goog googl that are doubling down on their ai efforts the bloomberg report noted while this techfueled rally in stocks has helped the indices register decent gains the relatively lower returns of the aipowered etf appear to be ironical bigtech rally jessica rabe cofounder of datatrek research told bloomberg it is ironic that an aipowered algorithm has not capitalized on the rally in big tech stocks thats been driven by its own disruptive technology aieq has previously tended to work best when it could catch momentumdriven tech names in broadbased market rallies like during the pandemic crisis but its clearly failed to do that this year she said interestingly at a certain point in january the aieq was reflecting yeartodate gains of over 16 outperforming the sp 500 the report said however the outperformance failed to continue aieqs portfolio roughly contains 150 stocks and is mainly inclined towards software and internet shares with palantir technologies inc pltr as its top holding the report said while alphabet is among the etfs top 10 holdings it doesnt own popular ai stocks such as nvidia and microsoft it added read next debt ceiling gop negotiator says talks on most important issues with white house like buying a secondhand car