Electronics behemoth LG is partnering with financial technology (fintech) provider Qraft Technologies to list an exchange-traded fund (ETF) in the US. The fund’s portfolio selection will be powered by LG’s artificial intelligence (AI) tech as the firm hopes to grow more in the financial services sector.
ETF to Encompass About 100 Large-Cap Companies
LG Group is joining forces with South Korean fintech firm Qraft Technologies to launch an AI-powered exchange-traded fund in the US, Asia Nikkei reported on Tuesday. According to the report, the two companies filed their application for the US Large Cap Core ETF earlier this month, with plans to list the fund in November.
The move represents the beginning of a strategic technology research partnership between LG and SoftBank-backed Qraft, which has four US-listed ETFs whose holdings are managed by AI. The two companies are expected to launch a new ETF comprising around 100 large-cap companies.
“We believe the advanced technologies of Qraft and LG AI Research can have a strong impact on the investment management industry and expand the boundaries of applications in this space.”
– Marcus Kim, founder and CEO of Qraft Technologies.
When selecting stocks, the LQ-Qraft ETF will choose from a pool of companies participating in the Mission for the Future Program sponsored by LG Nova, a dedicated center for innovation. Meanwhile, LG also rolled out a new version of its AI software in July, Exaone 2.0, which can process information in English and Korean.
LG Aims to Become a Leading Tech Provider in the Financial Space
Launching an AI-powered ETF represents the electronics giant’s broader objective to leverage AI technology to venture into investment management. Until now, the company has been offering internal financial forecasts for its affiliates; thereby, the Qraft partnership can be seen as an extension of those operations.
“While collaborating with so many LG affiliates, one of the difficulties is that there is no sufficient amount of data on [these areas], so we go into the financial market because there is an abundant amount of data out there.”
– said Hwayoung Lee, vice president and head of AI business development at LG AI research.
Furthermore, LG believes it is well-positioned to become a leading technology provider in the financial market, which explains its interest in expanding into wealth management and other investment areas.
Last year, LG made active efforts aimed at establishing itself as a major player in Web3 and the metaverse, such as the launch of a proprietary NFT marketplace for its smart TVs. However, the Seoul-based conglomerate seems to have shifted its focus toward AI amid the market’s abrupt growth.
This article originally appeared on The Tokenist
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