Six Years, Two ETFs: An AI Driven Revolution
Today marks a milestone in the evolution of AI-powered investing!
The 6-year anniversary of the QRAFT AI-Enhanced U.S. Large Cap ETF (QRFT) and the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM). Launched in 2019, these pioneering ETFs have redefined active management by integrating artificial intelligence into portfolio construction and stock selection.
Meet the ETFs
QRFT – QRAFT AI-Enhanced U.S. Large Cap ETF
QRFT is an actively managed ETF that leverages a proprietary AI engine that analyzes five key factors: quality, size, valuation, momentum, and low risk. The goal is to achieve long-term capital appreciation by selecting U.S.-listed large-cap companies that exhibit favorable characteristics across these factors. This AI system is licensed by the Adviser to dynamically adjust the portfolio.
AMOM – QRAFT AI-Enhanced U.S. Large Cap Momentum ETF
AMOM seeks to capture capital appreciation by investing in U.S.-listed large-cap companies demonstrating momentum factor. The AI engine identifies stocks that have outperformed recently, operating on the premise that such momentum may potentially persist in the near term. This strategy allows the fund to potentially adapt to market trends and aim to capitalize on emerging opportunities.
Performance Highlights
Over the past six years, both QRFT and AMOM have showcased the potential of AI in investment management. For the year 2024, AMOM delivered a 35.56% return, outperforming the S&P 500's 25.02% gain. [1] This success was attributed to strategic allocations in high-performing stocks like Nvidia and Broadcom. [2]
QRFT, with its multi-factor approach, achieved a 21.42% return in the same year, aligning closely with the broader market. Its diversified holdings in sectors such as healthcare, consumer staples, and technology provided a balanced exposure, demonstrating the effectiveness of its AI-driven strategy. [1]
The Power of AI in Investing
The success of QRFT and AMOM underscores the transformative impact of artificial intelligence in the financial sector. By continuously analyzing vast datasets and adjusting portfolios accordingly, these ETFs have managed to navigate complex market environments. Qraft Technologies' commitment to innovation has positioned them at the forefront of AI-enhanced investment solutions, offering investors a glimpse into the future of asset management.
Here's to Six Years of Innovation and Success!
As we celebrate this milestone, we acknowledge the groundbreaking work of Qraft Technologies in integrating AI into investment strategies. QRFT and AMOM have paved the way for the next generation of intelligent investing.
To learn more about QRFT and AMOM click here: qrftaietf.com
[1] Ultimus Fund Solutions, Fund Administrator (for the period ending 12/31/24)
[2] Ohlen, Elsa, This AI Robot Trader Beat The Market For Most of 2024. Here Are Its Favorite Stocks, Barrons, 1/13/2025
QRAFT Disclosures:
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-855-973-7880 or visit our website at www.qraftaietf.com. Read the prospectus or summary prospectus carefully before investing.
The Funds are distributed by Foreside Fund Services, LLC
Investing involves risk, including loss of principal. The Funds are subject to numerous risks including but not limited to: Equity Risk, Sector Risk, Large Cap Risk, Management Risk, and Trading Risk. The Funds rely heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, the Fund’s strategy may not be successfully implemented and the Funds may lose value. Additionally, the funds are non-diversified, which means that they may invest more of their assets in the securities of a single issuer or a smaller number of issuers than if they were a diversified fund. As a result, each Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. A new or smaller fund's performance may not represent how the fund is expected to or may perform in the long term if and when it becomes larger and has fully implemented its investment strategies. Read the prospectus for additional details regarding risks.
QRAFT AI-Enhanced U.S. Large Cap ETF: Companies in the health care sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of health care through outpatient services.
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF: The Fund is subject to the risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund’s investments. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, the loss of patent, copyright and trademark protections, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market.
LG QRAFT AI-Powered U.S. Large Cap Core ETF: Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies or the market as a whole. The securities of large-capitalization companies may also be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes. The market price of an investment could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally. In pursuing the Fund’s investment objective, the Adviser consults a database generated by the LG-Qraft artificial intelligence system, which automatically evaluates and filters data according to parameters supporting a particular investment thesis. For the database, LG QRAFTAI selects and weights portfolios of companies in the Universe listed on the New York Stock Exchange and NASDAQ to provide a balanced exposure to a variety of factors affecting the U.S. market including, but not limited to, quality, size,value, momentum, and volatility. The Fund expects to hold 100 companies in its portfolio. While it is anticipated that the Adviser will purchase and sell securities based on recommendations by the U.S. Large Cap Core Database, the Adviser has full discretion over investment decisions for the Fund.
Alpha – Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.
AutoML – Short for Automated Machine Learning, AutoML is the automation of the machine learning process to make machine learning jobs simpler, easier, and faster.
Kirin API - Developed by Qraft’s data scientists, integrates multiple vendors to provide both macroeconomic and company fundamentals with the correct point-in-time data.
