QRAFT AI Enhanced U.S. Large Cap ETF

QRAFT AI Enhanced U.S. Large Cap ETF (QRFT) is an actively managed fund of about 300 large U.S. companies, picked and weighted using an artificial intelligence model from South Korea's QRAFT Technologies that refreshes its list every four weeks. It may suit investors who want a model-driven alternative to a broad large-cap index fund, though its 0.75% annual fee (expense ratio) is far above the 0.06% average of similar funds.

• Over the year to Oct 27, 2026, QRFT returned +11.7%, 6th of 9 among similar funds.
• Its 5-year annualized return was +10.0%.
• In the 2020 COVID crash it fell 30.2% and regained its old high 2.4 months after the low.
• Its worst full calendar year was 2022 (-22.7%); its best was 2020 (+40.1%).
• The deepest fall in its price history was 30.2% (Feb 19, 2020 to Mar 23, 2020), recovered by Jun 5, 2020.

As of Apr 30, 2026, the fund held 299 securities; the ten largest made up 43.97% of assets.

By sector

• Over the three months to Apr 30, 2026, investors withdrew a net $3.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.79%, -4.89%, +11.37%.

QRFT is actively managed, not tied to an index. Its adviser, Exchange Traded Concepts, licenses a stock-selection system from QRAFT Technologies, a South Korea-based AI investment firm. 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-cap index.

Every four weeks, the model uses deep learning, a form of AI trained on vast data, to forecast how much each stock may beat its peers over the next four weeks and how uncertain that forecast is. It aims for balanced exposure to factors such as quality (profitability), size, value, momentum (recent price strength) and volatility. The top 300 to 350 stocks are weighted to seek the most return for the risk taken. The adviser generally follows these picks but has full discretion to override them.

No single company may exceed 10% at each rebalance, and holdings above 5% may not total more than 40% of assets. Because the list is refreshed so often, trading is heavy: portfolio turnover, a gauge of yearly trading, was 267% per the prospectus filed August 26, 2025. Trading costs come on top of the 0.75% expense ratio. As of April 30, 2026, the fund held no derivatives, and technology was its largest sector at 32.9%.

• QRFT charges 0.75% a year, versus an average of 0.06% 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).

Its broad large-cap holdings resemble an S&P 500 fund's, but the AI-driven stock picking, 0.75% fee and small asset base make it a single-strategy bet rather than a low-cost foundation.

QRFT adds an AI-driven tilt to stock holdings but has offered no shelter in downturns. It launched in 2019, after the 2008 crisis. Its deepest drop, 30.2% in the 2020 COVID crash, was erased within about 2.4 months of the March 23, 2020 low. The 2022 bear market lasted longer: a 28.1% fall from January 3 to September 30, 2022 took until February 7, 2024 to recover, 16.3 months after the low. Its worst calendar year was 2022, a 22.54% loss. Drawing income in such a slump would mean cashing out shares at depressed prices.

Income is minimal: a 0.23% yield over the past year as of October 27, 2026, paid quarterly. In the SEC's standard example ($10,000 earning 5% a year), costs total about $930 over 10 years. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.