The new ETF leverages the firm’s proprietary risk model to assess market drawdown risk, seeking to deliver an optimized AI driven equity allocation for investors
NEW YORK & SEOUL, South Korea–(BUSINESS WIRE)–$AIDB #AI—Qraft Technologies, a leading invest-tech company developing artificial intelligence investing solutions backed by SoftBank, announces the launch of its newest ETF, the QRAFT AI-Pilot U.S. Large Cap Dynamic Beta and Income ETF (NYSE: AIDB).
A first for the ETF space, AIDB leverages Qraft’s proprietary AI-powered risk model making it the only, fully AI-powered risk managed ETF in the market. By accounting for over 70 macro and market data sets, assessing factors like momentum, volatility and correlation, AIDB will oscillate exposure between broad-based US Large Cap equities and cash/cash equivalents based on the AI’s perceived market risk on a weekly basis. By doing so, the fund seeks to provide downside mitigation against extreme losses and lower volatility of investors’ portfolios.
“We believe the application of AI in actively managed funds transcends the limitations of the human mind, allowing for potentially better risk management and investment decision making,” says Marcus Kim, founder and CEO of Qraft. “This is an especially relevant potential benefit for investors in times of market distress when emotions and biases are heightened. We’ve introduced AIDB to extend these benefits to investors seeking dynamic equity exposure amid global market volatility by anchoring this fund’s strategy to our time-tested AI risk prediction model.”
Financial markets’ recent volatility–spurred by heightened inflation, geopolitical unrest, and other headwinds–have caused investors to seek risk-managed strategies. Unlike other risk-managed strategies which can be rules-based and often lag behind market moves, cap potential gains, or actively managed funds which are subject to human emotion and bias, AIDB seeks to account for market risk based purely on the factors that drive markets to potentially deliver a better vehicle for equity risk management and reduce the impact of drawdowns over the long term.
“Unlocking the power of AI to surpass the limitations of human investing has been our goal since 2016, and we’re so proud to deliver this new ETF at a time when we believe investors are seeking a new way to manage risk,” says Francis Geeseok Oh, APAC CEO of Qraft Technologies. “Qraft has been providing AI-powered dynamic beta risk management solutions to institutional investors in South Korea since 2019, with its proven reputation and record of helping investors navigate the market smoother by managing downside risk with AI model’s prediction power. AI’s speed and prediction capabilities will help investors uncover greater opportunities and we look forward to continuing to apply AI to help investors achieve their goals.”
The latest holdings and documents can be found via www.qraftaietfs.com/aidb.
About Qraft
Qraft 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 20 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.
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-Pilot U.S. Large Cap Dynamic Beta and Income: 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.
Contacts
Media:
Klaudia Wierzbowska
Gregory FCA for Qraft
Email: klaudia@gregoryfca.com
Phone: 570-856-1360
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