As technology continues to modernize, investors are given the opportunity to invest in assets that have more and more complex machine learning algorithms. These algorithms can process large amounts of data, learn the relationships between different data, and learn what data is important, as well as what data can be ignored.
Perhaps most importantly, artificial intelligence has no frequency bias as to how the data should look, but instead objectively observes the data, and may be able to determine relationships between data points that would not be as easily accessible to a human being, as well as potentially identify those relationships that change over time.
Qraft Technologies, Inc. has a long track record of developing innovative AI solutions that have been adopted by major financial institutions and turned into successful AI products and services, including an AI-driven global equity ETF and one of Korea’s largest robo-advisor services.
The company’s founder and CEO Hyung-Sik Kim is an AI entrepreneur and former Chief Product Officer and Chief Innovation Officer at Qraft Technologies, a highly sought-after expert for educating top-level management about the impact of AI on industry.
The QRAFT AI Enhanced U.S. Large Cap ETF (QRFT) is an actively managed exchange-traded fund which aims to provide investors with long-term capital appreciation by utilizing a proprietary artificial intelligence system to select large-capitalization U.S. stocks to be held in the portfolio.
The fund seeks to hold stocks with exposure to five main factors affecting the U.S. stock market, namely, quality, size, valuation, momentum, and low risk. To create optimal factor weights, the fund using artificial intelligence (AI) technologies to continuously learn the correlation of factor returns with various macroeconomic and valuation conditions. The investment system returns stock weights that are in line with the targeted factor weights for the portfolio.
The fund seeks to provide dynamic exposure to basic investment factors. Certain causes or conditions may affect the returns to these basic investment factors. Artificial Intelligence may be able to identify data patterns that are not readily discernible to humans and to continuously learn the correlation of factors to these causes or conditions.
For those investors seeking equity exposure, QRFT may be used as a portion of their portfolio’s large cap equity allocation. In addition, QRFT offers factor exposure and may be appropriate for investors who are seeking exposure to the momentum factor. Finally, since QRFT functions as an investment strategy based on cutting-edge technology, QRFT may be appropriate for an alternatives allocation.
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