Liquid Alternatives: The HDIV ETF – Artificial Intelligence Picks High Dividend Stocks With Upside
Qraft Technologies, a South Korean artificial intelligence firm, just launched its third ETF in the US.
The Qraft AI Enhanced US High Dividend ETF (HDIV) targets high dividend US stocks selected through a proprietary AI system. Qraft Technologies has brought the ETF to market in collaboration with Exchange Traded Concepts, a white label ETF provider. (ETF Strategy)
The actively managed ETF seeks to provide investors the best of both worlds. These are US stocks that are likely to pay high dividends as well as outperform over the short-term.
However, the ETF charges an expense ratio of 0.75%.
The initial selection universe comprises companies that list on one of the main US stock exchanges. However, they should have a minimum capitalization of $4 billion. Out of this pool, the manager selects 150 companies using a screening approach for dividends and fundamentals. The fund then runs these companies through Qraft’s AI-based AQUA system to generate a probability distribution for the expected three-month return of each stock. Thereafter, the fund selects the 100 stocks with the highest average expected rate of return.
“As our system is ready to compete in the heart of the global financial market, we feel happy but also feel a sense of responsibility for proving AI’s capabilities in the world of investing,” said Hyung-Sik Kim, CEO, and co-founder of Qraft Technologies. “In the future, we expect AI-enhanced products have the potential to become substitutes for broad market indices if we prove it with our technologies.”
“These funds are actively managed by the AI system AQUA which was developed by Qraft Technologies,” said J Garrett Stevens, CEO of Exchange Traded Concepts. “Great colleagues and great ideas are the true drivers of ETF success.”
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