Qraft Technologies Launches AI-Based 5th ETF, Collaboration With LG

LG Ai Research, applies artificial intelligence for everything. (photo: dock. again)

Qraft Technologies on Tuesday 7 November launched a fifth exchange-traded fund (ETF) that relies on artificial intelligence to select assets, continuing their expansion in the dedicated ETF AI marketplace.

ETF LG Qraft AI-Powered US Large-Cap Core will combine Qraft's existing AI model with an additional AI-based forecast tool developed by LG, an electronics conglomerate from South Korea.

LG AI Research, a division of LG, has applied artificial intelligence for everything from supply forecasts and demand to raw material purchase decisions.

Qraft is a financial technology company based in Seoul, South Korea, which has developed and launched a series of AI-based ETFs traded on US exchanges. "We employ 70 data scientists and have developed a model based on financial market data and macroeconomic indicators," said Francis Oh, CEO of Asia Pacific Qraft.

According to him, the engineering team of 260 people from LG AI Research added a large language modeling tool, referring to artificial intelligence tools trained to recognize, understand, and analyze text.

Thirteen ETFs have integrated AI into their investment process, only two of which managed to outperform the broad market index, according to data from Morningstar Direct. Simply Asset Management announced plans for three such funds last month.

"Good experience will be the main driver of investor acceptance of this AI-based investment product," said Oh, quoted by VOI from Reuters.

He said that eliminating human emotions from the stock selection process is something investors will receive. This newETF will use the AI model to build a 100-share portfolio. It will be rebalanced every four weeks. Investors will pay an annual fee of 0.75%, in line with other Qraft ETFs.