The Qraft AI-Enhanced US Large Cap Momentum ETF AMOM, an exchange-traded fund driven by artificial intelligence, has acquired stakes in Reddit-favorite stock Advanced Micro Devices Inc. AMD, Snapchat parent Snap Inc. SNAP and Zoom Video Communications Inc. ZM.
What Happened: The ETF’s latest portfolio after rebalancing in early August showed that the fund has also sold major chunks of its holdings, or entirely divested, in cybersecurity solutions company Fortinet Inc. FTNT and online dating services provider Match Group Inc. MTCH.
The fund has also divested its stake in auto parts retailers O’Reilly Automotive Inc. ORLY and AutoZone Inc. AZO as well as supermarket chain Kroger Co. KR.
The ETF has a history of accurately predicting the price movements of Tesla Inc. TSLA shares.
The fund now has chipmaker Advanced Micro Devices as its largest investment with a 7.01% weighting, followed by Snap with a weighting of 5.03% and communications technology company Zoom Video with 4.85% weighting.
The other two stocks that make up the top five holdings in the AMOM portfolio are pet healthcare company IDEXX Laboratories Inc. IDXX with a 3.6% weighting and medical device company Align Technology Inc. ALGN with 3.4%.
Prior to the rebalancing, the ETF had Fortinet, Match Grop, O’Reilly, AutoZone and Kroger as its five largest stock holdings.
See Also: What Is Fueling The AMD Rally?
Why It Matters: AMOM, a product of South Korea-based fintech group Qraft, tracks 50 large-cap U.S. stocks and reweighs its holdings each month. The fund uses AI technology to automatically search for patterns that have the potential to produce excess returns and construct actively managed portfolios.
AMOM has delivered year-to-date returns of 16.6%, compared to its benchmark – the Invesco S&P 500 Momentum ETF SPMO – which has returned 16.4% so far this year.
AMD is seeing high interest from retail investors and was the fifth-most discussed stock on Reddit’s r/WallStreetBets forum as of Sunday night.
Tech companies such as Snap and Zoom Video have benefited from the pandemic that drove people online. In July, Snap reported better-than-expected results for the second quarter and also said it has made significant progress with its augmented reality platform during the quarter.
Price Action: AMD shares closed almost 2% lower in Friday’s trading at $110.11, while Snap closed 1.7% lower at $75.98.
Zoom Video shares closed 3.8% lower in Friday’s trading at $383.47.
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