ETC serves as adviser to the LG QRAFT
AI-Powered U.S. Large Cap Core ETF (NYSE: LQAI), the fifth fund to
join Qraft AI ETFs lineup.
NEW
YORK, Nov. 9, 2023 /PRNewswire/ -- Exchange
Traded Concepts announces the launch of the LG QRAFT
AI-Powered US Large Cap Core ETF (Ticker: LQAI), bringing Qraft AI
ETFs lineup to five funds. Qraft and LG AI Research, the artificial
intelligence research hub of South Korean multinational
conglomerate, the LG group, joined forces to develop LQAI ETF's
AI-backed strategy that powers the actively managed exchange-traded
fund, advised by ETC.
"Offering investors a unique opportunity to power their
portfolios with cutting-edge AI technology is a great addition to
the to the Qraft AI ETFs lineup," says J. Garrett Stevens, CEO of Exchange Traded
Concepts. "Our partnership with QRAFT has been instrumental in
bringing high-quality technological AI innovation to the ETF
space."
The LQAI ETF is driven by a unique strategy that seeks capital
appreciation by investing in 100 carefully selected stocks within
the US large cap universe. LQAI stands out by harnessing advanced
artificial intelligence to pinpoint stocks that exhibit the
greatest conviction in each four-week rebalancing period.
"LQAI's AI engine is a dynamic and evolving entity," says
Marcus Kim, CEO of Qraft. "It
constantly fine-tunes its algorithms with the latest market data to
identify patterns and seize investment opportunities. What's more,
it learns from its previous results to optimize the portfolio,
ensuring that the ETF remains at the forefront of the investment
landscape."
The full suite of Qraft ETFs includes the Qraft AI-Enhanced U.S.
Large Cap ETF (QRFT), the Qraft AI-Enhanced U.S. Large-Cap Momentum
ETF (AMOM), the Qraft AI-Enhanced U.S. High Dividend ETF (HDIV),
and the Qraft AI-Enhanced U.S. Next Value ETF (NVQ).
To learn more, please visit qraftaietf.com.
ABOUT EXCHANGE TRADED CONCEPTS (ETC)
Exchange Traded
Concepts is an SEC-registered independent investment adviser that
specializes in white-label ETFs and offers ETF services spanning
ETF-in-a-Box™ and sub-advisory to fund marketing
and consulting. ETC provides the trust, board, and
decades of experience to offer asset managers (hedge, SMAs,
mutual) and others an efficient, cost-effective means to
leverage the benefits of the ETF wrapper. Learn more
at exchangetradedconcepts.com.
About Qraft Technologies
Qraft Technologies is a
fintech company aiming to drive growth in the asset management
industry through its innovations in artificial intelligence (AI)
and investing. Qraft offers a variety of AI-powered investment
solutions, including a security selection engine, asset allocation
engine, robo-advisory solution and an AI order-execution system.
From data processing to alpha research and portfolio execution,
Qraft has an established track record in developing cutting-edge AI
solutions that have been adopted by over 25 financial institutions
worldwide. In 2022, Qraft received a US$146
million investment from SoftBank Group, entering into a
strategic partnership to accelerate AI in the asset management
industry.
About LG AI Research
Launched in December 2020 as the artificial intelligence (AI)
research hub of South Korea's LG
Group, LG AI Research aims to lead the next epoch of artificial
intelligence (AI) to realize a promising future by providing
optimal research environments and leveraging state-of-the-art AI
technologies. And LG AI Research developed its large-scale AI,
EXAONE, a 300 billion parametric multimodal AI model, in 2021.
EXAONE, which stands for "Expert AI for Everyone," is a multi-modal
large-scale AI model that stands out from its peers due to its
ability to process both language and visual data. With one of the
world's largest learning data capacities, LG AI Research aims to
engineer better business decisions through its state-of-the-art
artificial intelligence technologies and its continuous effort on
fundamental AI research. For more information,
visit lgresearch.ai.
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.
QRAFT AI-Enhanced U.S. Next Value ETF: The value approach
to investing involves the risk that stocks may remain undervalued,
undervaluation may become more severe, or perceived undervaluation
may actually represent intrinsic value. Value stocks may
underperform the overall equity market while the market
concentrates on growth stocks. The small- and mid-capitalization
companies in which the Fund invests may be more vulnerable to
adverse business or economic evens than larger, more established
companies, and may underperform other segments of the market or the
equity market as a whole. Securities of small- and
mid-capitalization companies generally trade in lower volumes, are
often more vulnerable to market volatility, and are subject to
greater and more unpredictable price changes than larger
capitalization stocks or the stock market as a whole.
Qraft AI-Pilot US Large Cap Dynamic Beta and Income ETF:
Equity securities may fluctuate in value and can decline
significantly in response to the activities of individual companies
and general market and economic conditions. To the extent that the
Fund temporarily invests defensively in Debt ETFs as part of its
principal investment strategies, it may not be able to achieve its
investment objective. The Fund's defensive investing may not be
effective in protecting its value. Generally, the value of debt
securities will change inversely with changes in interest rates. To
the extent that interest rates rise, certain underlying obligations
may be paid off substantially slower than originally anticipated
and the value of those securities may fall sharply. The Fund relies
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 Fund may lose value.
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.
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SOURCE Exchange Traded Concepts, LLC