SWP files for a 21-stock AI-selected equity ETF

The prospectus is marked subject to completion. There is no exchange, no fee, and no date when shares would trade. What the paper does register is a method: an AI-driven model that would score the Russell 1000, keep 21 names, and rebalance once a month. AI in the fund's name is the stock picker, not a book of chipmakers and software vendors.

Manager Directed Portfolios, a multi-adviser trust, filed Post-Effective Amendment No. 189 on Wednesday afternoon to add the DSWP AI-Driven Equity ETF as a new series. DSWP Investment Management would advise it.

AI-selected U.S. equity funds already listed

The Amplify AI Powered Equity ETF has been listed since 2017 and held $120 million this week. The FINQ FIRST U.S. Large Cap AI-Managed Equity ETF held $4.7 million. Over five years through Thursday, Amplify's fund and QRAFT's momentum ETF were the two AI-selected books with a record long enough to set against the SPDR S&P 500 ETF.

Most of the funds below charge 0.70% or more; Pictet is the exception.

SWPI would enter that shelf as a 21-name fund against Amplify's 161 and Ai Funds' 38, next to FINQ's 16 holdings rather than the broad books. Pictet listed in February. Ai Funds listed on August 21 with a mandate of about 40 to 60 names from the 1,000 most liquid U.S. equities.

What the DSWP AI Model would hold

The fund would seek long-term capital appreciation. Under normal market conditions it would invest at least 80% of net assets, plus any borrowings, in equity securities of U.S.-listed companies chosen by the DSWP AI Model.

The starting universe is the Russell 1000, the large-cap U.S. stock index. The model would score every name on growth-oriented parameters defined by the adviser, then weight the top-scoring stocks, typically 4% to 5.5% each, subject to industry caps, into a 21-holding portfolio. It would rebalance monthly. The adviser would execute the buys and sells the same trading day to match the model's book.

That is a concentrated, actively managed U.S. large-cap sleeve, classified in the paper as non-diversified. A holder would own whatever 21 Russell 1000 names the model ranked highest that month.

The prospectus warns that model or data errors may produce incorrect selections the adviser might not identify or correct. It also flags monthly rebalance risk: a move around the rebalance date may not say much about the next one. The fund is newly organized, with no operating history.

DSWP's live fund is a different product

DSWP Investment Management already lists one ETF, the DSWP Growth & Income ETF, which held $148 million this week and charges 0.99%. It launched on September 24, 2024, on Nasdaq. Its objective is long-term capital appreciation with a secondary emphasis on income. Portfolio managers using macroeconomic, fundamental, and technical analysis run a book of about 30 to 70 stocks; it held 44 names as of Thursday. Over the past year the fund returned 7.3%, against 17% for the S&P 500 ETF. Wednesday's filing leaves that fund untouched; the two products use different processes.

Where SWPI would sit

If the series lists, it would be DSWP's model-run book at the concentrated end of that shelf, a different process from the live fund. The fee, the exchange, and the prospectus date are all still blank, and the filing elects automatic effectiveness 75 days after filing under Rule 485(a)(2).