LG Qraft AI-Powered U.S. Large-Cap Core ETF (LQAI US) – Portfolio Construction Methodology

The investment strategy steering the actively managed LG Qraft AI-Powered U.S. Large-Cap Core ETF seeks capital appreciation by investing ≥80% in U.S.-listed large-cap equities selected and weighted using a proprietary LG–Qraft deep-learning system. Every four weeks, the model evaluates macro inputs, fundamental reports and market-price data to forecast relative four-week appreciation, balances factor exposures (quality, size, value, momentum, volatility), and proposes a 100-stock portfolio. The adviser retains full discretion, applies portfolio and trading oversight, and enforces caps of ≤10% per issuer at rebalance and ≤40% aggregate in positions >5%. Liquidity and investability inform sizing, with sector concentrations emerging from bottom-up signals rather than targets. High turnover is expected given the refresh cadence. Sells/trim decisions reflect updated model convictions, corporate actions and risk controls to maintain a diversified large-cap exposure consistent with RIC requirements.

To explore LQAI in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/LQAI_US