Alternative Investments/AI: Qraft Technologies Debuts AI-Managed U.S. Large Cap Equity ETF
The new Qraft ETF has an expense ratio of 0.75%.
Invest-tech Qraft Technologies has launched a new ETF called the QRAFT AI-Pilot U.S. Large Cap Dynamic Beta and Income ETF (NYSE: AIDB). This ETF utilizes the company’s proprietary risk model, powered by artificial intelligence (AI), to assess market drawdown risk and provide optimized equity allocation for investors.
It is the first fully AI-powered risk-managed ETF in the market and aims to mitigate downside losses and reduce portfolio volatility. According to Qraft, recent market volatility has made risk-managed strategies very popular with investors. Therefore, the new AI-powered ETF, which assesses market risk by focusing solely on factors that drive market moves, is a superior option that better manages equity risk, and as well, restricts drawdowns over the long term.
Using more than 70 macro and market data sets, evaluating indicators such as momentum, volatility, and correlation, the new ETF (AIDB) will adjust its investment exposure between broad-based US Large Cap equities and cash/cash equivalents every week, depending on the AI’s interpretation of market risk.
Qraft Technologies believes that AI can overcome the limitations of human investing, particularly in times of market distress, by offering better risk management and investment decision-making capabilities.
The launch of the Qraft ETF comes at a time when investors are seeking risk-managed strategies due to market volatility. Qraft Technologies has a track record of providing AI-powered solutions to institutional investors and received a significant investment from SoftBank Group in 2022 to further accelerate AI in the asset management industry.
As on May 24, AIDB held iShares Core S&P 500 ETF (NYSEARCA: IVV) (99.92%) and Cash (0.08%).
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