Active Investing, Driven by the Predictive Power of AI
The strategy aims to leverage a proprietary AI engine developed by LG AI Research and Qraft Technologies. The AI engine utilizes a deep neural network to actively generate signals to analyze relative strength conviction of individual stocks within the universe
Investment Thesis
Seeks capital appreciation by investing in 100 stocks in the US large cap universe where its AI models sends signals with the highest conviction in each rebalancing period which happens every four weeks.
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Capital Appreciation
Seeks capital appreciation by investing in 100 stocks in the US large cap universe.
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Active Investing
Aims to make active investing more efficient by utilizing the technology of LG AI Research and Qraft Technologies
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Artificial Intelligence
Constantly evolves with Latest market data as it fine-tunes to find patterns to seek investment opportunities.
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DISTRIBUTIONS
Fund Comparison
For standardized performance and performance to the most recent month-end for the SPDR S&P 500 ETF Trust (SPY),please click here.
LQAI is a broadly diversified, actively managed, multi-factor strategy ETF which seeks to outperform the S&P 500 Index. SPY is the flagship ETF tracking the S&P500 Index, and as such substantially overlaps LQAI in security exposure.
investment objectives, strategies, policies, or restrictions of other funds may differ and more information can be found in their respective prospectuses. Therefore, we generally do not believe it is possible to make direct fund to fund comparisons in an effort to highlight the benefits of a fund versus another similarly managed fund.
Premium/Discount Chart
*Liquidity: Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
LG QRAFT AI-Powered U.S. Large Cap Core ETF
Investment Objective: LQAI is an actively managed ETF that leverages artificial intelligence technology to select stocks with the overall goal of capital appreciation.
Costs & Expenses: 0.75% gross and net expense ratio.
Liquidity: Because the Fund is an ETF, only a limited number of institutional investors (known as “Authorized Participants”) are authorized to purchase and redeem shares directly from the Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, shares of the Fund may trade at a material discount to their net asset value (“NAV”) per share and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.
Risk:The fund is subject to risks including, but not limited to common stock risk, issuer-specific risk, large capitalization risk, limited authorized participants, market makets, and liquidity providers risk, management risk, market risk, model and data risk, new/smaller fund risk, non-diversificaiton risk, operational risk, portfolio turnover risk, sector focus risk, and trading risk.
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. If the model or data are incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the model or data been correct and complete. SPY would may not be subject to this type of risk
As a newer, small fund, LQAI is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. There can be no assurance that the Fund will achieve an economically viable size, in which case it could ultimately liquidate.
While the Fund’s sector exposure is expected to vary over time, the Fund may have a significant portion of its assets in one or more sectors from time to time. When the Fund has significant exposure to a particular sector, it will be more susceptible to the risks affecting that sector relative to SPY.
The Fund is actively-managed, while SPY is not. Therefore, the fund may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for the Fund. While the Fund’s investment program was designed with a view to achieving its investment objective, there can be no assurance or guarantee that the Fund will achieve its stated investment objective over short- or long-term market cycles. Various legislative, regulatory, or tax restrictions, policies or developments may affect the success of the Fund’s investment program and investment techniques utilized by the Fund.
Guarantees or Insurance: An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency.
Fluctuation of Principal or Return: As with all funds, a shareholder is subject to the risk that his or her investment could lose money.
Tax Features: Distributions from ETFs are subject to taxation.
SPDR S&P 500 ETF Trust (SPY)
Investment Objective: The Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index (the “Index”).
SPY seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the Index (the “Portfolio”), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the Index.
Costs & Expenses: 0.09% gross and net expense ratio
Liquidity: : As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund’s daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines
Risk: The fund is subject to risks including, but not limited to, passive strategy/index risk, index tracking risk, and equity investing risk.
Guarantees or Insurance: An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Fluctuation of Principal or Return: As with all investments, there are certain risks of investing in the Trust, and you could lose money on an investment in the Trust.
Tax Features:The Trust will make distributions that are expected to be taxable currently to you as ordinary income and/or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account.
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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.