FINANCE

AI-Powered Stock Index Bests Benchmarks in Debut Year

Published: Nov. 12, 2025 7:23 p.m. GMT+8

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An index that uses a large language model (LLM) to select stocks has significantly outperformed its benchmarks in its first year, showcasing the potential for artificial intelligence (AI) to play a more central role in passive investing.

The SSI Gao Du LLM Resilient 50 Strategy Index, a dividend-focused product, achieved a total return of 23.2% in the year ending Nov. 11. This performance surpassed the 11.6% return of the CSI Dividend Total Return Index and the 14.7% return of the CSI Dividend Low Volatility Total Return Index over the same period.

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The SSI Gao Du LLM Resilient 50 Strategy Index, launched in November 2024, returned 23.2% in its first year, outperforming benchmarks by 8-12 percentage points.
The index is fully automated, using Baidu’s Ernie LLM for stock selection without human intervention, and rebalances monthly with an annual turnover of 562%.
Its success marks a significant advance in applying AI to passive investing, though its long-term viability remains to be seen.

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Who’s Who

Beijing Gao Hua Securities Co. Ltd.: Beijing Gao Hua Securities Co. Ltd. (Gao Hua) co-launched the SSI Gao Du LLM Resilient 50 Strategy Index in November 2024 with Baidu, Inc. This dividend-focused index, which uses an LLM for fully automated stock selection, achieved a 23.2% total return in its first year, outperforming benchmarks. Gao Hua's asset management department oversees the index, which reflects the firm's research expertise combined with Baidu's AI technology.

Baidu Inc.: Baidu Inc. partnered with Beijing Gao Hua Securities Co. Ltd. to launch the SSI Gao Du LLM Resilient 50 Strategy Index. This dividend-focused index leverages Baidu's LLM technology, specifically its Ernie bot, to automate stock selection. The index achieved a 23.2% total return in its first year, showcasing the potential for AI in passive investing.

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What Happened When

Late 2022：: ChatGPT debuted, prompting many financial firms to explore using LLMs to assist in investment research.

November 2024：: The SSI Gao Du LLM Resilient 50 Strategy Index was launched by Beijing Gao Hua Securities Co. Ltd. and Baidu Inc.

In 2025：: Financial institutions raced to integrate LLMs into their operations. The index was rebalanced monthly in 2025 with an annualized turnover rate of 562%. Policy support for institutional investment led to strong capital inflows into dividend-paying stocks.