At a glance
LQAI charges 0.75% a year, above the 0.07% average of the 8 funds most like it (the most expensive of 9). It has $2.2M in assets, the 9th largest of that group; it paid 0.9% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.4% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds. Its ten largest positions make up 39.6% of the fund, out of 100 in all.
The short version
LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) is an actively managed fund holding about 100 large U.S. stocks chosen using an artificial intelligence model from South Korea's LG, with picks refreshed every four weeks. It may interest investors who want AI-driven stock selection over an index. The catch: fees of 0.75% a year, versus a 0.07% average for similar large-cap funds, and only $2.2 million in net assets as of July 31, 2026.
Price history
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LQAI +12.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LQAI official prospectus, to Dec 31, 2025 | — | +13.52% | — | — | — | +24.09% |
| LQAI price data to Oct 27, 2026 | +18.0% | +12.4% | — | — | — | +23.5% |
- Over the year to Oct 27, 2026, LQAI returned +12.4%, 5th of 9 among similar funds.
- Its worst full calendar year was 2025 (+13.7%); its best was 2024 (+27.8%).
- The deepest fall in its price history was 21.2% (Feb 18, 2025 to Apr 8, 2025), recovered by Jul 17, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +18.0% | — |
| 2025 | +13.7% | +13.52% |
| 2024 | +27.8% | +27.87% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2800 | |
| 2025 | $0.4500 | +95.7% |
| 2024 | $0.2300 |
What's inside
As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 39.63% of assets.
| Holding | Weight | |
|---|---|---|
| MICRON TECHNOLOGY INC | 5.37% | |
| NVIDIA CORP | 5.27% | |
| MICROSOFT CORP | 4.79% | |
| AMAZON.COM INC | 4.35% | |
| APPLE INC | 4.09% | |
| ADVANCED MICRO DEVICES INC | 3.60% | |
| SANDISK CORP | 3.39% | |
| TESLA INC | 3.22% | |
| INTEL CORP | 2.97% | |
| JP MORGAN CHASE & COMPANY | 2.57% | |
| WARNER BROS. DISCOVERY INC | 2.27% | |
| FORD MOTOR CO | 1.98% | |
| KINDER MORGAN INC | 1.88% | |
| HUNTINGTON BANCSHARES INC | 1.85% | |
| NU HOLDINGS LTD | 1.85% |
By country
United States 93.17%Cayman Islands 1.85%Bermuda 1.37%Ireland 1.3%Canada 1.12%By asset type
Stocks 99.02%By sector
Sectors of the companies held, for the 86.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +12.50%, +1.56%, -7.82%.
How it works
LQAI does not track an index. Its adviser, Exchange Traded Concepts, picks stocks with an artificial intelligence process licensed from LG Management Development Institute, owned by South Korea's LG Corporation. At least 80% of net assets go into U.S.-listed large companies, meaning those at least as big as the smallest member of a widely recognized large-company index.
Every four weeks, a database from LG AI Research ranks large stocks listed on the New York Stock Exchange and Nasdaq. Deep learning models, AI trained on large amounts of data, forecast how each stock may do against the others over the next four weeks, and how uncertain that forecast is. The top 100 are weighted using factors such as company size and price swings, aiming to maximize return for the risk taken. No stock may exceed 10% at rebalance, and stocks above 5% can't total more than 40%.
The adviser generally follows the model but can override it, for example after a merger or a data error. The reshuffling means heavy trading: the prospectus filed August 27, 2026 reports 503% turnover, roughly like replacing the whole portfolio five times in a year. That adds trading costs beyond the 0.75% fee and, the prospectus warns, may have tax consequences. As of July 31, 2026, the fund held 100 stocks and no derivatives.
What it really costs
- LQAI charges 0.75% a year, versus an average of 0.07% for the similar funds below (9th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $930 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LQAI | $77 | $240 | $417 | $930 |
In a retirement portfolio
It owns large U.S. stocks like a core fund, but its 0.75% fee, heavy AI-driven trading, technology tilt and $2.2 million in net assets point to a small side position rather than a foundation.
LQAI launched November 7, 2023, so its record doesn't include the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its two full calendar years were gains: 27.87% in 2024 and 13.52% in 2025. Its deepest drop was 21.2%, from February 18 to April 8, 2025, recovered by July 17, 2025. A beta of 1.27 for the year to October 27, 2026 means it swung more than the market, so losses could be deeper for anyone who may need to sell in a bad year.
Income is modest: a 0.9% yield over the 12 months to October 27, 2026, paid quarterly. Costs are high: $930 over 10 years on $10,000 in the SEC's standard example, which assumes a 5% yearly return. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors curious about AI-driven stock picking who accept a 0.75% yearly fee for an actively managed mix of about 100 large U.S. companies.
- Those seeking a small side holding tilted toward technology (28.6% of assets), led by Micron, Nvidia and Microsoft as of July 31, 2026.
- Investors who can sit through sharper swings than the market, such as the 21.2% drop between February and April 2025.
Look elsewhere if
- Cost-focused investors: S&P 500 funds such as VOO and IVV charge 0.03% a year, versus LQAI's 0.75%, and overlap about 35% with its holdings.
- Those wanting a long track record or a large fund: LQAI launched in November 2023 and held $2.2 million as of July 31, 2026.
- Taxable-account investors wary of heavy trading: turnover was 503%, which the prospectus says may raise costs and cause adverse tax consequences.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| LQAI this fund | — | 0.75% | $2.2M | +12.4% | — |
| IWL iShares Russell Top 200 ETF | 36% | 0.15% | $2.19B | +12.5% | +25.5% |
| USPX Franklin U.S. Equity Index ETF | 35% | 0.03% | $1.98B | +12.9% | +24.9% |
| SPY SPDR S&P 500 ETF Trust | 35% | 0.0945% | $781.19B | +11.5% | +21.9% |
| SPYM SPDR Portfolio S&P 500 ETF | 35% | 0.02% | $153.92B | +11.5% | +22.0% |
| IVV iShares Core S&P 500 ETF | 35% | 0.03% | $888.13B | +11.5% | +22.0% |
| VOO Vanguard S&P 500 ETF | 35% | 0.03% | $1.67T | +12.4% | +23.6% |
| BKLC BNY Mellon US Large Cap Core Equity ETF | 34% | 0% | $5.47B | +13.4% | +25.4% |
Questions investors ask
How does LQAI use AI to pick stocks?
LQAI uses an artificial intelligence model licensed from South Korea's LG to choose about 100 large U.S. stocks every four weeks. A database from LG AI Research forecasts how each large stock listed on the New York Stock Exchange or Nasdaq may perform against its peers over the next four weeks, then picks and weights the top 100. The adviser, Exchange Traded Concepts, can override the model. As of July 31, 2026, the largest holdings were Micron Technology (5.4%), Nvidia (5.3%) and Microsoft (4.8%).
What's the difference between LQAI and IWL?
IWL follows an index, while an AI model guides LQAI's active management. Their holdings overlap by about 36%, the most of any similar fund, and the iShares Russell Top 200 ETF charges 0.15% a year versus LQAI's 0.75%. One-year returns to October 27, 2026 were nearly identical: 12.5% for IWL and 12.4% for LQAI. IWL is also far larger, with about $2.19 billion in net assets as of June 30, 2026, against LQAI's $2.2 million as of July 31, 2026.
Is LQAI expensive compared with other large-cap ETFs?
Yes, for a large-company stock fund. LQAI's expense ratio, the yearly fee taken from fund assets, is 0.75%, per the prospectus filed August 27, 2026. The eight funds with the most similar holdings average 0.07%, and LQAI ranks 9th of 9 on cost. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $77 in the first year and $930 over 10 years. Trading costs from its 503% turnover come on top.
Does LQAI pay dividends?
Yes, quarterly, but the payments are small. LQAI paid about $0.41 per share over the 12 months to October 27, 2026, a yield of 0.9%. The fund's stated goal is capital appreciation, meaning a rising share price, not income. Investors who rely on a portfolio for regular cash may find that funds built around dividend-paying stocks fit that need more directly.
Could LQAI close because it's so small?
It could, and the prospectus flags the risk. LQAI held about $2.2 million in net assets as of July 31, 2026, less than any of the eight funds with the most similar holdings, some of which hold billions. The prospectus warns that a fund that doesn't reach an economically viable size could ultimately liquidate. In a typical ETF liquidation, holders receive cash for their shares, which can trigger a taxable gain in a regular brokerage account and force a reinvestment decision.