S&P Global is launching a new benchmark that will use AI for predictive modelling to support rebalancing across US equity sectors.
The S&P 500 3AI Sector Rotator Index will utilise machine learning to forecast sector performance by analysing company data and market signals, enabling systematic allocations across S&P 500 sectors.
The launch is S&P DJI’s first AI-enhanced index using predictive modelling as a tool. The analytics will be provided by 3AI, a UK-based leader in AI-powered investment intelligence, and will use machine learning model to identify the three highest-ranked sectors at each rebalancing date.
Cameron Drinkwater, chief product and operations officer at S&P Dow Jones Indices, said: “By applying machine learning to identify sector rotation opportunities, we are offering market participants a dynamic, proactive approach to overweighting sector exposures within the S&P 500.
“While the index is driven by machine learning models, it is uniquely transparent, bringing together the benefits of active systematic sector strategies with the transparency and robust governance of high-quality index design.”
Jacob Ayres-Thomson, founder and CEO of 3AI, added: “By combining S&P DJI’s benchmark expertise with 3AI’s predictive models, we’re building adaptive, forward-looking indices that reflect how information dynamically shapes markets—advancing the next generation of intelligent benchmarks.”
