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The Q.ai Team
May 25, 2022

About Q.ai’s Smarter Beta Kit

About Q.ai’s Smarter Beta Kit

Q.ai has a wealth of Kits from which to choose—and you have the option to swap or combine them, too. 

While Q.ai leverages the power of AI to manage (and maximize) your money for you, the Smarter Beta Kit is particularly unique. It provides AI-powered rebalancing between equity factors to try to capture upside above the standard U.S. market.

That basically means that this is the low-risk Kit that navigates markets the way Tom Brady maneuvers the football field.

Get into factor-based trading with Smarter Beta

With the Smarter Beta Kit, which is part of our Foundation Kit collection, you can trade the major factors driving large-cap stocks with the help of AI. That’s because our AI is trading different factor ETFs that classify stocks into categories that have been associated with different factors or characteristics of stocks.

Think of it as a novel way to experience factor-based trading.

Factor-based trading refers to an investment approach that targets specific drivers of returns across various asset classes. There are two main types of factors that drive returns: macroeconomic and style factors. Macroeconomic factors capture broad risks across asset classes, while style factors aim to explain returns and risks within them. 

The Smarter Beta Kit focuses on what the investment world calls style factors—value, growth, momentum, volatility and size. It dynamically rotates between these unique factors. So you don’t have to sweat whether “value” or “growth” is currently en vogue. Instead, let our AI do the work for you.

Plus, because Smarter Beta is a Foundation Kit, you can also switch on Portfolio Protection.

Invest in companies like Meta and J&J

The idea behind the Smarter Beta Kit is that it rotates between factors as market conditions change. So Smarter Beta uses factor ETFs to allocate more to certain factors, when appropriate. These are ETFs like iShares MSCI USA Size Factor ETF (SIZE) and Shares MSCI USA Quality Factor ETF (QUAL).

While the largest holdings in these ETFs vary over time, QUAL, for example, might include higher allocations to companies like Nike and Apple. 

In a sense, Smarter Beta captures various flavors of the U.S. equity market and adjusts between them to optimize for risk and reward. These flavors are rebalanced weekly.

Balance factor exposure with Smarter Beta

Ultimately, Smarter Beta provides investors with exposure to the broad market while aiming to capture upside and better risk-adjusted returns by balancing factor exposure.

We created Smarter Beta because we wanted to give users the benefits of diversified investing while in the U.S. stock market, while benefiting from AI-powered predictions on a timely mix of investment styles that adjusts to changing market conditions.

Bottom line

Smarter Beta can serve as a strong foundation in your portfolio as it invests in the U.S. stock market with modifications to security weights to enhance specific factors at certain times.

Just keep in mind that Smarter Beta is a low-risk Investment Kit. So be mindful of that, since lower-risk investments tend to experience slower growth than higher-risk investments.

Add the Smarter Beta Kit to your investment portfolio in Q.ai.

Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.

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