Goldman Sachs just introduced an AI‑Free Index that lets you stay invested in global equities while steering clear of companies whose revenues depend heavily on artificial‑intelligence. The benchmark is designed to smooth out the wild swings that have hit AI‑centric stocks, offering a low‑volatility, factor‑driven alternative for portfolios that need stability.
Why the AI‑Free Index Matters
Investors are tired of watching their holdings bounce with every AI headline. This index gives you a way to capture broad market upside without the roller‑coaster risk that AI hype brings. It’s a practical tool for anyone who wants steady returns while avoiding sector‑specific turbulence.
Built on Proven ActiveBeta Methodology
Goldman’s ActiveBeta framework selects stocks based on four core attributes—value, momentum, quality, and low volatility. By adding an explicit filter that excludes firms with significant AI exposure, the AI‑Free Index keeps the disciplined tilt you expect from ActiveBeta while removing the AI‑related risk.
Key Features
- Diversified global exposure: Covers equities across developed markets, giving you broad participation.
- Factor‑driven selection: Uses value, momentum, quality and low‑volatility screens to target long‑term performance.
- AI exclusion filter: Removes companies whose revenue streams are tied to artificial‑intelligence technologies.
- Low‑cost structure: Designed to keep fees minimal, helping you keep more of your returns.
How the Index Fits Into Your Portfolio
If you’re managing a balanced fund or a personal portfolio, the AI‑Free Index can serve as a “plug‑and‑play” core holding. Its low‑volatility tilt aligns with the growing demand for stable‑return strategies, and the AI filter lets you meet client mandates that call for risk mitigation without sacrificing global equity upside.
Potential Market Impact
By providing a benchmark that reflects current risk sentiment, the index could nudge capital away from AI‑heavy names and toward more traditional sectors. It also signals a broader shift among asset managers: moving from AI‑themed products to tools that explicitly avoid AI exposure.
What to Watch Next
Keep an eye on how institutional investors adopt the AI‑Free Index in the coming months. If the demand for AI‑avoidance tools continues to rise, you might see similar benchmarks emerging across other asset classes, giving you even more ways to protect your portfolio from sector‑specific volatility.
