Exchange Traded Concepts and Qraft Technologies Launch the QRAFT AI-Enhanced U.S. Next Value ETF (NVQ)
The Fund will include non-traditional valuation measures
Dec 03, 2020, 09:30 ET
NEW YORK, Dec. 3, 2020 /PRNewswire/ -- Exchange Traded Concepts (ETC) is pleased to announce that, in conjunction with Qraft Technologies, it is launching the QRAFT AI-Enhanced U.S. Next Value ETF (NYSE: NVQ). The Fund began trading on the New York Stock Exchange on 12/03/2020.
"We are proud to expand our relationship with Qraft by offering a fourth ETF with the firm," said J. Garrett Stevens, CEO of Exchange Traded Concepts. ETC and Qraft launched the Qraft AI-Enhanced U.S. Large Cap ETF (QRFT) and the Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM) in 2019 and the Qraft AI-Enhanced U.S. High Dividend ETF (HDIV) in 2020.
NVQ is an actively managed exchange-traded fund (ETF) that aims to provide exposure to value through the use of artificial intelligence (AI).
"After years of underperformance, we believe that value is poised for a comeback," noted Hyungsik Kim, CEO of Qraft Technologies. "In addition to traditional valuation metrics, NVQ will utilize AI technology to measure a company's intangible assets, including items such as research & development, marketing costs, and intellectual property," Mr. Kim went on to note.
As our economy shifts from "brick and mortar" assets to more digital and knowledge-based capital, intangibles are becoming increasingly crucial for valuation measures. With Qraft AI, our aim is to properly measure a company's book value by incorporating intangible assets. The Fund will then invest in companies with a higher ratio of adjusted book value relative to their market value. This may help investors discern the correct value of a company.
One reason why value investors don't include intangibles is that current accounting measures don't support it. Another reason is that measuring intangibles can be notoriously tricky as there is no clear boundary between sectors. For example, a biotech company may not have the same branding budget as a consumer goods company. With AI technology, however, measuring intangibles is not just possible, but it may also be able to detect the differences between sectors accurately.
About Exchange Traded Concepts
Exchange Traded Concepts is a private-label ETF advisor with passive and active exemptive relief from the SEC under the Investment Company Act of 1940 to launch custom domestic and international equity and fixed income exchange traded funds through a complete turnkey solution. ETC's ETF-In-A-Box™ Solution provides an efficient and cost-effective method to bring exchange-traded funds to market with the operational and regulatory experience necessary to manage the complexities of launching and managing an ETF. By developing strategic partnerships with veteran ETF service providers, ETC assists investment managers, independent advisors, foreign asset managers, research and index providers and others in navigating the exchange-traded fund launch and ongoing management process with the time-sensitivity and professional guidance essential for maintaining regulatory compliance. Additional information can be found on the Exchange Traded Concepts' website.
About Qraft Technologies
Qraft Technologies, Inc. is on a mission to innovate the inefficiencies of today's asset management firms. From data processing to alpha research and order execution, Qraft has had a long track record of developing innovative AI solutions that have been adopted by major financial institutions and turned into successful AI products and services, including the world's first AI-driven global equity ETF and Korea's largest robo-advisor service.
Investing involves risk, including loss of principal. The Fund is subject to numerous risks including but not limited to: Equity Risk, Sector Risk, Large Cap Risk, Management Risk, and Trading Risk. The Fund relies heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, the Fund's strategy may not be successfully implemented and the Fund may lose value. Additionally, the fund is non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, each Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. A new or smaller fund's performance may not represent how the fund is expected to or may perform in the long term if and when it becomes larger and has fully implemented its investment strategies.
The value approach to investing involves the risk that stocks may remain undervalued, undervaluation may become more severe, or perceived undervaluation may actually represent intrinsic value. Value stocks may underperform the overall equity market while the market concentrates on growth stocks. Read the prospectus for additional details regarding risks.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 973-7880 or visit our website at www.qraftaietf.com. Read the prospectus or summary prospectus carefully before investing.
Alpha: A measure of a fund's return relative to its benchmark.
The Funds are distributed by Foreside Fund Services, LLC
SOURCE Exchange Traded Concepts, LLC
