Two New Artificial Intelligence ETFs Debut on NYSE
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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.”

minju LeeComment
Exchange Traded Concepts Partners with Qraft Technologies to Launch Two Artificial Intelligence (AI) Powered ETFs
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QRFT seeks to provide dynamic exposure to five main factors affecting the U.S. stock market, namely, quality, size, valuation, momentum, and low risk. To create optimal factor weights, the fund using artificial intelligence (AI) technologies to continuously learn the correlation of factor returns with various macroeconomic and valuation conditions. AMOM is an actively managed exchange-traded fund which aims to provide investors with long-term capital appreciation by utilizing a proprietary artificial intelligence system to select large-capitalization U.S. stocks with exposure to the momentum factor.

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New Active ETFs Run With AI
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Qraft Technologies has launched two artificial-intelligence-based funds through Exchange Traded Concepts. The Qraft AI-Enhanced U.S. Large-Cap ETF (QRFT) and the Qraft AI-Enhanced U.S. Large-Cap Momentum ETF (AMOM) are both actively managed and rely on Qraft’s proprietary AI Quantitative Investment System known as AQUA.

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Qraft Technologies participated in ‘2019 Samsung Venture Investment Partners Day’

‘The 2019 Samsung Venture Investment Partners Day’ was held on 25th April, where eight local promising startups including Qraft Technologies were invited. ‘The Partners Day’ is attracting attention in that the event was hosted by Samsung Venture Investment, a subsidiary company of Samsung Electronics. The company was founded with a purpose on investment and has delivered M&As as well as stock investments for Samsung Electronics so far.

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Qraft Technologies Attracts USD 10 millions in Investment

Delta AI Unicorn Investment Fund, with IBK Capital, Hana Financial Investment Co.,Ltd., and Kyowon Invest, has invested $10m in Qraft Technologies, a financial AI startup. The enterprise value for this investment is estimated to be over $100m. The investment will be used for strengthening a lineup of AI ETFs, R & D and overseas expansion of AI solution.

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Banks seeking to foster start-ups.
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Qraft has developed Hana Bank's asset management service HAI Robo which combines sophisticated AI algorithms and the convenience of online. In the first 9 months of launch, the service has surpassed 40,000 subscribers and AUM has reached $500m. Qraft has become a major player in the Robo advisor market and this is the key example of fostering and joint venture through Hana Bank's '1Q Agile Lab'. In addition, other domestic banks have also launched a start-up accelerating program and are working to promptly respond to a rapidly changing financial environment by building strong partnerships and business models for mutual growth.

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AI ETF developed by Qraft Technologies, will be listed in New York Stock Exchange.

“We chose the US market to prove our technology.” said Hyung-sik Kim, CEO of Qraft Technologies in a recent interview to answer why AI-driven ETFs are listed in the United States market instead of domestic market. Qraft has completed all preparations and filed all relevant documents in the middle of last month. Given the two-month review period, Qraft's two AI ETFs using deep-learning technologies are expected to be listed on the New York Stock Exchange (NYSE) during April and May. He also said, "It will not the end with the listing of ETFs, but we will continue to build related line-ups. We will also focus on expanding our stride in non-financial AI solutions and consulting areas."

minju Lee
ETFs getting popular, Asset management and Fin-tech firms stepping in
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Last year, Korean ETF market renewed its highest level with its strengths in low-cost and relatively stable performance in the market selloffs. Qraft Technologies, Seoul-based FinTech startup, is a leader in robo-advisor industry using its own deep-learning technology to provide investment solutions that are automatically managed through technology without human intervention. Qraft Technologies is in the process of entering the global market as it is preparing to launch AI-driven ETFs in the United States.

minju Lee
Korean Asset Managers compete to secure technological capabilities in ETF landscape

Two largest asset managers in Korea, Mirae Asset Global Investements and Samsung Asset Management, are competing to secure technological capabilities in the ETF industry. As ETF-managed-portfolios (EMP) are attracting lots of attentions from the market, the big two are collaborating and investing in the FinTech startups who have already developed appropriate technologies to advise and manage these portfolios. Mirae Asset acquired approximately 20% stake in Qraft Technologies and also established a research institution with Qraft and Korea University.

Hyungsik Kim
Qraft Technologies’ Artificial Intelligence (AI) ETFs will be listed in New York Stock Exchange

Qraft Technologies and ETC will launch two AI-driven ETFs on the New York Stock Exchange (NYSE) as they have completed the filings with Securities and Exchange Commission (SEC). The two ETFs will be solely managed by AI and use deep-learning technologies, developed by Qraft, to select companies and their weights in the portfolios. ‘AI-Enhanced U.S. Large-Cap Strategy’ and ‘AI-Enhanced U.S. Large-Cap Momentum Strategy’ are the two ETFs that are developed by Qraft and managed by ETC in the U.S.

Hyungsik Kim
Expecting that the threshold of regulation will be lowered and the robo-fund era will come.

RoboAdviser Funds have proven to be a stable defensive player with a much lower loss than the domestic stock-type funds averaged over the past year, while financial authorities are anticipating a full-scale expansion of the market by easing regulations related to RoboAdvisor funds. Also, Mirae Asset Management, which has already invested $8m to acquire Qraft Technologies' stake, has made additional investments to establish a joint venture with Qraft Technologies. Robot fund world is expected to bloom in earnest this year.

Hyungsik Kim
KEB Hana Bank received Global Best Digital Solution PB Bank Award.

With this award, KEB Hana Bank has been recognized internationally for PB capabilities for four consecutive years since 2016. An official from Global Finance said, "In recent 11 months, KEB Hana Bank's RoboAdviser 'HAI Robo' has reached about 150,000, and its state-of-the-art asset management expertise and know-how utilizing digital are also the world's best."

Hyungsik Kim
EMP-type Robo Advisor Funds, Who is the Leader?

According to FN Guide, 'Mirae Asset AI Smart Beta EMP-type Fund',which was developed by Qraft Technologies and managed by Mirae Asset Global Investments, earned the highest return among the EMP products from the end of last year. In the last three months, the return rate for type A was 11.56% and for type C was 11.44%. Mirae Asset AI Smart Beta EMP-type Fund(C-I and F) of the recently established Mirae Asset Investment Management also showed a high return of 8.20% this year. It is expected that the launch of products that are robo-advisor will have good accessibility, low commission, and good response.

Hyungsik Kim
Robo-advisor FinTech Company, worth $100m in the first three years of its foundation ... Kim Hyung-sik, CEO, Qraft Technologies

Qraft Technologies has grown rapidly only within its first three years after the inception, providing robo-advisor solutions for banks and insurance companies. Recently, they developed AXE, a deep-learning-based execution system. The firm is also seeking a global expansion while supplying AI ETF solutions for global asset management companies. "Our goal is to continue to introduce new AI-based financial services.", said Kim, the CEO of Qraft Technologies.

Hyungsik Kim
[Financial Holding Company Plans to Foster Venture Business ①] KEB Hana Financial Group Chairman will invest $15b by 2020

Kim Jeong-tae, KEB Hana Financial Group chairman, plans to implement productive finance by creating a 15-billion-dollar fund which invests in new growth companies, the fourth-industry-leading companies, and small and medium-sized venture businesses by 2020. KEB Hana Bank successfully developed 'HAI Robo' asset management service by collaborating with Qraft Technologies through '1Q Agile Lab', a program that supports FinTech startup companies. 

Hyungsik Kim
Qraft Technologies, From robo-advisor to AI-driven trading executions

Qraft's proprietary AI trading execution system 'AXE' is based on deep-learning technologies which executes a large amount of trading orders with minimal distortion in the market. Recently, AXE won a competition with professional dealers and proved its marketability and reliability. Qraft is continuously expanding its business horizon from AI-driven asset management to AI-based trading solutions globally.

Hyungsik Kim