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Two New Artificial Intelligence ETFs Debut on NYSE ETF Trends

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Two new artificial intelligence ETFs launched on the New York Stock Exchange on Tuesday via a partnership between Exchange Traded Concepts and Qraft Technologies. The pair of ETFs are the Qraft AI Enhanced U.S. Large-Cap ETF (NYSEArca: QRFT) and the Qraft AI Enhanced U.S. Large Cap Momentum ETF (NYSEArca: AMOM). Hyung-Sik Kim, CEO and co-founder of Qraft Technologies, said they have been working together with ETC to improve the performance of traditional quantitative investment strategies by applying AI technologies. "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 financial market," Kim said. "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. I would like to thank everyone at Qraft and ETC for their hard work."


SoftBank Makes $146M Bet on AI Firm Qraft

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SoftBank is investing $146 million in the South Korean artificial intelligence (AI) company Qraft Technologies Inc. to help it expand into the U.S. As The Wall Street Journal (WSJ) reported Monday (Jan. The companies declined to disclose Qraft's valuation, per the WSJ. SoftBank, based in Tokyo, is one of the largest tech investors in the world, managing a portfolio in excess of $100 billion. Qraft has 50 employees, most of whom work on the company's AI project and who own about a third of the business, with outside investors controlling the rest. "SoftBank [now] makes up a large portion of that," Robert Nestor, the U.S. CEO of Qraft., told the WSJ.


AI adoption in the ETF industry begins to grow

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The growing appreciation that human stockpickers struggle to outperform their benchmark indices has helped fuel a massive surge in assets held by passively managed exchange traded funds. Now some companies are hoping to show that artificial intelligence can finally give them an edge. The technology is fast-evolving but at least two fund managers, EquBot and Qraft Technologies, running dedicated AI-powered ETFs are claiming early success, even though some of their AI models' decisions might have required strong nerves to implement. For example, the team at Qraft, which offers four AI-powered ETFs, listed on NYSE Arca, witnessed its technology build a weighting of 14.7 per cent in Tesla in its Qraft AI-Enhanced US Large Cap Momentum ETF (AMOM) in August last year, but when it rebalanced a month later on September 1 it sold it all. The ETF began buying Tesla again in November, amassing a stake of 7.6 per cent by January this year, but in the February rebalancing it sold the entire holding once again.


WSJ News Exclusive

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Founded in 2016 by its chief executive, Marcus Hyung-Sik Kim, the Seoul-based firm plans to use the investment to further its expansion into the U.S. and other key markets, said Robert Nestor, Qraft's U.S. CEO. The companies declined to disclose Qraft's valuation. Tokyo's SoftBank is one of the world's largest investors in technology companies, with its Vision Fund and a successor managing a portfolio of more than $100 billion. Asset managers, once skeptical of the value of AI and mindful of their staffs' concerns that the programs would replace human stock- and bond-pickers, are now looking to add data-analysis tools that can help them combat chronic underperformance and justify the fees they charge investors. The industry's awakening has triggered an arms race to hire the programmers who can develop those tools and spot the market signals hidden in the data.


Tesla Shares Scooped Up By AI-powered Fund With Exceptional Track Record - AI Summary

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Tesla (NASDAQ: TSLA) shares have been scooped up by an AI-powered investment fund with an exceptional track record with the electric automaker's shares. The ETF buys and sells shares of companies under the symbol AMOM and is powered by Qraft, a Seoul, South Korea-based company that provides low-cost, actively managed ETFs with exposure to U.S. large-cap stocks, according to the company's website. It has recently loaded up on $1.4 million worth of TSLA shares once again, and it has become the ETF's third-largest holding behind Amazon and Facebook, making up 6% of its total portfolio. The firm then fulfilled another purchase of TSLA shares in November during a temporary dip and sold at the end of January 2021, when the stock was trading near peak levels. Tesla reached an all-time high of $900.40 per share during this time, and AMOM sold its TSLA holdings for a profit.