Introducing AiPEX5, an Artificially Intelligent Index with IBM WatsonTM

AI Powered Investing

The AI Powered US Equity Indexes are the first and only rules-based equity strategies to use IBM Watson to turn data into investment insight.

AiPEX5 is a risk controlled, excess return index comprised of approximately 250 U.S. publicly traded companies, adjusted monthly, that is intended to provide growth through a variety of market conditions. Access to AiPEX5 is available only through a variety of HSBC Structured Investment solutions.

Award Winning Innovation

SPi is a market intelligence company that provides market intelligence, reference data and lifecycle information for the structured products industry.

In 2021, the HSBC AI Powered US Equity Indexes won the Best New Index award. This award recognises, following the Index Standard methodology, the best non-traditional index provider of the year, which outlines their methodology, innovation, and value to investors.

HSBC AiPEX5 Resources

These client approved materials provide an in depth overview of the performance and strategy that drives AiPEX5.

AiPEX 5 Performance:

The AI Powered US Equity Index 5 would have provided growth through a variety of market environments due in part to a monthly equity selection process intended to adapt to market changes and mitigate potential risks. While real-time calculations did not begin until May 4, 2020, the graph below illustrates how AiPEX5 would have provided long-term positive returns with low volatility.


annual return

Key Statistics and Characteristics

Returns as of last available closing level AI Powered US
Equity Index 5 (ER)
YTD 3.17%
1 Y 7.67%
3 Y 7.02%
5 Y 28.37%
10 Y 57.70%
10 year volatility 4.84%
Bloomberg Ticker AiPEX5
Asset Class Equity
Currency USD
Launch Date May 4, 2020
Index Sponsor EquBot, Inc.
Calculation Agent Solactive AG
Index Fee1 0.85% per year

1AiPEX5 Index values shown here, and as calculated and published by Solactive AG, are net of the 0.85% p.a. Adjustment Factor (deducted daily).
The graph and table above sets forth the hypothetical back-tested performance of the Index from June 30, 2011 through May 4, 2020 and actual index performance thereafter through June 30, 2021. See the risk factors and “Use of Simulated Returns” herein.

AiPEX5 Index Strategy

AiPEX5 uses a 3-step equity selection process to create the monthly index portfolio.

Step 1: Scoring

Scores for the 1,000 largest U.S. companies are calculated based on:

Financial Health Score:
evaluates a company’s fundamentals and key figures.
Management Score:
assesses a company’s management strength and thought leadership.
News & Information Score:

measures a company’s market sentiment, economic, and geopolitical risks.

Step 2: Select

Approximately 250 companies with the highest combined Financial Health, Management, and News and Information Scores are selected for the portfolio.

Step 3: Diversify

Companies are assigned portfolio weights, with the largest weights going to the companies with the highest combined scores (subject to diversification and market liquidity limits).

AiPEX5 daily risk control helps provide smoother returns.

AiPEX5 reacts daily to changing market conditions, as rapid movement in the market, or volatility, can create greater potential risk.

AiPEX5 reduces
the impact of short-term volatility in the equity markets through daily re-allocations between the equities selected by the AI algorithms and a cash component.

AiPEX5 seeks
a 5% daily volatility target. If the volatility falls below the target, the allocation to selected equities is increased up to a maximum of 150%. If the volatility is greater than the target, allocations to the selected equities may be reduced. Allocations below 100% to selected companies will be reallocated to a cash component.

For more information on the index methodology, please see the AiPEX5 Index Guideline and the AI Powered US Equity Base Index Guideline published by
Solactive AG. Information contained in these Index Guidelines or otherwise available from Solactive AG is not incorporated by reference in, and should not be
considered a part of, this website.

Next Steps

Investments in the AiPEX5 are available only through HSBC Structured Products. Contact your Financial Professional about what HSBC AiPEX5 investments might help you achieve your financial goals.

Financial Advisors can view the current HSBC offerings linked to AiPEX5 click here

Financial Advisors not yet registered with HSBC, can register here