NVQ — QRAFT AI-Enhanced U.S. Next Value ETF
Data updated: 2024-03-21
NVQ — QRAFT AI-Enhanced U.S. Next Value ETF. United States Mid Cap Value Thematic Equity · $1.64M AUM. Holdings, fees, performance and SEC filings.
NVQ Fund Overview
NVQ — QRAFT AI-Enhanced U.S. Next Value ETF is a US ETF managed by Exchange Listed Funds Trust, categorised as United States Mid Cap Value Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US ETF
- Manager: Exchange Listed Funds Trust
- Category: United States Mid Cap Value Thematic Equity
- Assets under management: $1.64M
- 1-year return: 0.1%
- Ticker: NVQ
- SEC CIK: 0001547950
- SEC series ID: S000069970
- Share class ID: C000222820
NVQ Investment Objective and Strategy
QRAFT AI-Enhanced U.S. Next Value ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Exchange Listed Funds Trust.
Investment objective
The QRAFT AI-Enhanced U.S. Next Value ETF (the Fund) seeks capital appreciation.
Principal investment strategy
The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective by utilizing a value investing strategy enhanced by the use of artificial intelligence, as described below. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amounts of any borrowings for investment purposes) in securities of U.S.-listed companies. The Fund generally will invest in U.S.-listed companies having a market capitalization of at least $1 billion at the time of purchase (the Universe). The Fund invests in the common stock of such companies. The Funds adviser, Exchange Traded Concepts, LLC (the Adviser), uses an investment process based on a proprietary artificial intelligence security selection process that extracts patterns from analyzing data, as discussed below, developed by QRAFT Technologies, Inc.
(Qraft). Qraft is a South Korea-based provider of artificial intelligence investment systems and currently offers services to various financial institutions in Korea. Qraft has licensed its proprietary artificial intelligence security selection process to the Adviser for purposes of managing the Fund. In pursuing the Funds investment objective, the Adviser consults a database generated by Qrafts AI Quantitative Investment System (QRAFT AI). Qraft created QRAFT AI to automatically evaluate and filter data according to parameters supporting a particular investment thesis. For the Funds database, QRAFT AI applies its artificial intelligence to develop a portfolio of investments based on the theory that a value investing strategy that adjusts a companys book value by taking into account future intangible assets ( e.g.
, a companys investment in research and development, marketing and advertising, and intellectual property) in addition to typical value factors ( e.g., book value to market value ratio, earning to market value ratio, and EV to EBIDTA ratio (also known as enterprise multiple, which is a ratio used to determine the value of a company enterprise value, or EV, divided by earnings before interest, taxes, depreciation, and amortization, or EBITDA)), may outperform more conventional value investing strategies that do not take such assets into account in comparing a companys book value to its intrinsic value. QRAFT AI filters the securities in the Universe using a proprietary methodology that takes into account the value of a companys future intangible assets to identify companies with an intrinsic value that is higher than their book value.
QRAFT AI then estimates each stocks relative superiority of price appreciation ( i.e. , increase in stock price) over the rest of the pool for the next four week investment period using deep learning technologies ( i.e. , exposure to and processing of large amounts of data) and the distribution of each stocks relative superiority of price appreciation for the same period using deep learning architectures such as Bayesian neural networks that estimate the uncertainty of its forecast, and selects the top 100 stocks based on the average of the distribution of each stocks relative superiority of price appreciation for inclusion in the database. The stocks included in the database are weighted pursuant to a methodology designed to maximize risk-adjusted return. The Fund expects to hold 100 companies in its portfolio.
While it is anticipated that the Adviser will purchase and sell securities based on recommendations by the QRAFT AI database, the Adviser has full discretion over investment decisions for the Fund. Therefore, the Adviser has full decision-making power not only if it identifies a potential technical issue or error with the QRAFT AI database, but also if it believes that the recommended portfolio does not further the Funds investment objective or fails to take into account company events such as corporate actions, mergers and spin-offs. Additionally, the Adviser has discretion over the amount of cash maintained in the Funds portfolio and the reinvestment of dividends in the Funds portfolio, subject to the Funds distribution requirements to maintain its classification as a RIC under Subchapter M of the Internal Revenue Code.
See Federal Income Taxes in the Funds SAI for a more complete discussion. Notwithstanding the foregoing, the Fund limits the weighting of a single company to 10% and no more than 40% of the Funds assets may be invested in securities with a more than 5% weighting in the Funds portfolio. Because the QRAFT AI database is adjusted every four weeks , the Adviser expects that the Fund will frequently purchase and sell shares of securities. While investing in a particular market sector is not a strategy of the Fund, its portfolio may be significantly invested in one or more sectors as a result of the security selection decisions made pursuant to its strategy. As of August 1, 2023, a significant portion of the Funds assets consisted of securities of companies in the Consumer Discretionary Sector, although this may change from time to time.
The Fund is non-diversified and may invest a greater percentage of its assets in a particular issuer than a diversified fund.
NVQ Holdings
Top 10 holdings of QRAFT AI-Enhanced U.S. Next Value ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Booking Holdings Inc | 7.25% |
| CVS Health Corp | 5.61% |
| Canadian Natural Resources Ltd | 4.09% |
| EOG Resources Inc | 3.91% |
| Target Corp | 3.85% |
| Marathon Petroleum Corp | 3.84% |
| Phillips 66 | 3.70% |
| Nucor Corp | 3.27% |
| Valero Energy Corp | 2.84% |
| Lennar Corp | 2.63% |
NVQ Portfolio Allocation
Asset-class allocation of QRAFT AI-Enhanced U.S. Next Value ETF by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 99.5% |
| Cash & Equivalents | 0.5% |
NVQ Performance
Total returns for NVQ (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 0.1% |
| 3 years (annualised) | 7.6% |
NVQ Risk Information
Risk metrics for NVQ, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 17.9%
NVQ Costs and Fees
NVQ costs about $81 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.81%
- Gross expense ratio: 0.81%
- Portfolio turnover: 261%
- Brokerage commissions: 14.78 bps of average net assets (SEC N-CEN)
NVQ Cashflows
Over the 12 months to 2024-01, QRAFT AI-Enhanced U.S. Next Value ETF had net inflows of $20.52M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-01 | $0 |
| 2023-12 | $3.15M |
| 2023-11 | $0 |
| 2023-10 | $3.04M |
| 2023-09 | $1.59M |
| 2023-08 | $4.84M |
NVQ Debt Constituents
No individual debt constituents are reported in QRAFT AI-Enhanced U.S. Next Value ETF's latest SEC N-PORT filing.
NVQ Prospectus and SEC Filings
Official QRAFT AI-Enhanced U.S. Next Value ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-08-29
- Prospectus (485BPOS) — filed 2022-08-30
- Prospectus (485BPOS) — filed 2021-09-01
- Portfolio holdings (N-PORT) — filed 2024-03-21
- Portfolio holdings (N-PORT) — filed 2023-12-20
- Portfolio holdings (N-PORT) — filed 2023-09-25
- Annual census (N-CEN) — filed 2023-07-11
- Annual census (N-CEN) — filed 2022-07-05
Related Funds
Other United States Mid Cap Value Thematic Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.