Qraft Technologies announced on May 20 that its Qraft AI Enhanced ETF (QRFT) and Qraft AI Enhanced Momentum ETF (AMOM) posted one-year returns of 15.8 percent and 16.63 percent after their NYSE debut on May 21, 2019, respectively. During the period, the ETFs’ benchmark index S&P500 rose 2.05 percent and SPDR S&P500, the largest ETF following the same benchmark index, rose 3.99 percent.
Three months ago, the South Korean artificial intelligence company conducted additional high-yield stock ETF (HDIV) listing. The company listed its ETFs by white labeling, that is, Qraft being in charge of making every management-related decision and local managers being in charge of execution only. Qraft is currently making preparations in the United States to list two more ETFs.
Qraft’s ETFs are in the spotlight these days in that they are active ETFs pursuing additional profits by means of AI instead of just imitating their benchmark indices. The financial AI company has attracted investments of more than 10 billion won so far from Shinhan Bank, Mirae Asset Global Investments, multiple venture capitals, etc.
Active ETFs currently account for just 2 percent of the U.S. ETF market, and yet the U.S. active ETF market is showing a rapid growth these days as the number of investors content with passive ETFs is falling. Qraft's ETFs are even more attractive in that they are run by AI and require much lower management fees.