Mitigate

The problem is, some stocks can have industry- or company-specific declines and not recover. Such was the case in March, when Silicon Valley Bank went bust and other California banks dropped. “The regional banking collapse was a pattern that the AI had never seen before,” Pannell says. That lack of understanding hurt the ETF, and it is underperforming this year. But the ETF’s AI has now “learned what that pattern looks like,” Pannell says, so it can mitigate losses in the future.
–Barron’s