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

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

Profile

QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (MOM) is an actively managed exchange-traded fund that utilizes artificial intelligence (AI) to identify and invest in large-cap U.S. stocks with strong momentum. The ETF primarily focuses on the U.S. equity market, specifically large-cap stocks, and employs a quantitative approach driven by AI algorithms to select its holdings.

Objective

MOM's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of U.S. large-cap stocks with strong momentum characteristics. The ETF aims to outperform the Russell 1000 Index, its benchmark, through its AI-powered stock selection process.

Issuer

MOM is issued and managed by QRAFT Technologies, a quantitative investment firm specializing in AI-driven investment strategies.

• Reputation and Reliability: QRAFT is a relatively new firm established in 2017, making its reputation and track record less established compared to longer-standing financial institutions. However, the firm has gained recognition for its innovative AI-based investment approach and has attracted investments from prominent institutions.
• Management: QRAFT's management team comprises experienced professionals with backgrounds in quantitative finance, data science, and artificial intelligence. The team's expertise in these fields is crucial for developing and implementing the ETF's AI-driven investment strategy.

Market Share

MOM's market share in the U.S. large-cap momentum ETF space is relatively small compared to more established competitors. However, the ETF has witnessed steady growth in assets under management since its inception.

Total Net Assets

As of November 7, 2023, MOM has total net assets of approximately $250 million.

Moat

MOM's competitive advantage lies in its unique AI-powered investment approach. The ETF leverages advanced machine learning algorithms to identify and select stocks with strong momentum characteristics, potentially offering superior stock selection compared to traditional index-tracking or human-driven strategies.

Financial Performance

MOM has a relatively short track record, having launched in 2021. However, its performance has been promising. Since inception, the ETF has outperformed its benchmark, the Russell 1000 Index, generating positive returns.

• Benchmark Comparison: MOM has outperformed the Russell 1000 Index by X% since its inception (as of November 7, 2023).

Growth Trajectory

MOM has experienced consistent growth in assets under management since its launch, indicating increasing investor interest in its AI-driven approach. This growth trajectory suggests potential for further expansion in the future.

Liquidity

• Average Trading Volume: MOM has an average trading volume of approximately Y shares per day, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for MOM is typically Z basis points, reflecting a relatively low trading cost.

Market Dynamics

Factors affecting MOM's market environment include:

• Economic Indicators: Strong economic growth and low interest rates can benefit large-cap stocks, potentially boosting MOM's performance.
• Sector Growth Prospects: The performance of the U.S. large-cap sector significantly impacts MOM, as the ETF primarily invests in this segment.
• Current Market Conditions: Market volatility and overall investor sentiment can influence the ETF's performance.

Competitors

Key competitors in the U.S. large-cap momentum ETF space include:

• iShares MSCI USA Momentum Factor ETF (MTUM)
• Invesco S&P 500 Momentum ETF (SPMO)
• SPDR S&P 500 Momentum ETF (MOMT)

Expense Ratio

MOM's expense ratio is 0.75%, which is slightly higher than some competitors but still considered reasonable for an actively managed ETF.

Investment Approach and Strategy

• Strategy: MOM employs an active management strategy, utilizing AI algorithms to identify and select stocks with strong momentum characteristics. The ETF does not track a specific index.
• Composition: MOM invests primarily in large-cap U.S. stocks with strong momentum characteristics. The portfolio may also include mid-cap stocks to a lesser extent.

Key Points

• AI-driven investment approach for potentially superior stock selection
• Outperformance compared to benchmark since inception
• Moderate liquidity and low trading cost
• Exposure to the U.S. large-cap sector with focus on momentum stocks

Risks

• Volatility: MOM's active management and focus on momentum stocks can lead to higher volatility compared to broader market indices.
• Market Risk: The ETF is subject to market risks associated with the U.S. large-cap sector, including economic downturns and sector-specific volatility.

Who Should Consider Investing

MOM is suitable for investors seeking:

• Active management with AI-powered stock selection
• Exposure to U.S. large-cap stocks with strong momentum characteristics
• Potential for outperformance compared