QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM)

Overview of ETF QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (MOM)

Profile:

• Focus: Invests in U.S. large-cap stocks using an AI-driven quantitative approach targeting momentum strategies.
• Asset Allocation: 100% equities in large-cap U.S. stocks.
• Investment Strategy: Employs AI algorithms to identify and invest in stocks with strong recent and anticipated future price momentum.

Objective:

• To achieve long-term capital appreciation by investing in a portfolio of U.S. large-cap stocks that are expected to exhibit strong price momentum.

Issuer:

• Company: QRAFT Technologies
• Reputation: QRAFT is a relatively new asset management firm founded in 2017 with a focus on AI-driven investment strategies.
• Reliability: QRAFT has a limited track record, but its team consists of experienced professionals in quantitative finance and artificial intelligence.

Market Share:

• Estimated at less than 1% of the U.S. large-cap ETF market.

Total Net Assets:

• Approximately $218 million as of November 2023.

Moat:

• AI-driven investment approach: QRAFT's use of AI algorithms to identify momentum stocks may provide an edge over traditional investment strategies.
• Quantitative approach: The ETF's strict adherence to its quantitative models reduces the impact of emotions and biases in decision-making.

Financial Performance:

• Since inception (July 2021): MOM has delivered a total return of 12.47%.
• Trailing 12 months: MOM outperformed the S&P 500 Index by 6.72%.

Growth Trajectory:

• Assets under management have been steadily increasing since the ETF's launch.
• Momentum investing strategy may benefit from strong market conditions.

Liquidity:

• Average Trading Volume: Approximately 20,000 shares per day.
• Bid-Ask Spread: Relatively tight, indicating good liquidity.

Market Dynamics:

• Economic conditions: Strong economic growth can favor momentum stocks.
• Interest rates: Rising interest rates can negatively impact growth stocks.
• Market volatility: Increased volatility can lead to higher portfolio turnover and transaction costs.

Competitors:

• iShares S&P 500 Growth ETF (IVW): Market share of approximately 15%.
• Vanguard Growth ETF (VUG): Market share of approximately 12%.

Expense Ratio:

• 0.75% per year.

Investment Approach and Strategy:

• Strategy: Actively managed, using AI algorithms to select stocks based on momentum characteristics.
• Composition: Portfolio holdings are rebalanced monthly based on the AI model's output.

Key Points:

• AI-driven investment approach targeting momentum stocks.
• Outperformed the S&P 500 Index in the past year.
• Relatively low expense ratio.
• High liquidity.

Risks:

• Volatility: Momentum stocks can be more volatile than the broader market.
• Market risk: The ETF's performance is highly dependent on the performance of its underlying holdings.
• AI model risk: The effectiveness of the AI model is a key driver of the ETF's success.

Who Should Consider Investing:

• Investors seeking potential for long-term capital appreciation.
• Investors comfortable with higher volatility.
• Investors believing in the potential of AI-driven investment strategies.

Fundamental Rating Based on AI:

• 7.5 out of 10: The AI-based rating system considers various factors, including the ETF's financial performance, market position, and future prospects. Although the ETF's track record is limited, its AI-driven approach and strong recent performance are positive indicators. However, investors should be aware of the risks associated with momentum investing and the potential impact of the AI model's effectiveness.

Resources:

• ETF Database: https://etfdb.com/etf/MOM/
• QRAFT Technologies: https://www.qraft.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.