The Qraft AI-Enhanced US Large Cap ETF QRFT has revealed that it has less holdings in “big tech” companies such as Microsoft Corp. MSFT, Apple Inc. AAPL, Amazon.com Inc. AMZN and Facebook Inc. FB, in comparison to the SDPDR S&P 500 ETF Trust SPY.
What Happened: The exchange-traded fund, which is driven by artificial intelligence, said it has removed Facebook from its top 10 holdings even as the social media giant continues to be in SPY’s top 10 holdings.
Facebook has itself announced it anticipates weaker earnings for the remainder of the year, the fund noted.
The ETF’s latest portfolio after rebalancing in August showed it has added five manufacturing stocks to its portfolio, indicating its bullishness on the sector.
The five companies are solar microinverter maker Enphase Energy Inc. ENPH, Taser maker Axon Enterrprise Inc. AXON, semiconductor company Entegris Inc. ENTG, semiconductor test equipment maker Teradyne Inc. TER and photovoltaic inverter manufacturer SolarEdge Technologies Inc. SEDG.
The fund has also reduced its holdings in Alnylam Pharmaceuticals Inc. ALNY, Citrix Systems Inc. CTXS, Cerner Corp. CERN, Ballard Power Systems Inc. BLDP and VMware Inc. VMW.
The ETF, however, continues to have Microsoft as its largest investment with a 3.1% weighting, followed by Apple with a weightof 2.8% and Amazon with 2.6% weight.
The other two stocks that make up the top five holdings in the QRFT portfolio are chipmaker Advanced Micro Devices Inc. AMD with 2.17% weighting and Alphabet Inc. GOOG GOOGL with 1.98%.
See Also: Tesla Fame's Robot-Run ETF Added Snapchat, Zoom And This WallStreetBets-Favorite Stock In July
Why It Matters: QRFT, a product of South Korea-based fintech group Qraft, seeks to invest in U.S. large cap stocks by finding alpha factors to potentially outperform the S&P 500 index.
QRFT has delivered year-to-date returns of 14.09%, compared to SPY, which has returned 19.55% so far this year.
Price Action: Microsoft shares closed 0.5% lower in Tuesday’s trading at $293.08, while Apple closed 0.6% lower at $150.19.
Amazon.com shares closed 1.7% lower in Tuesday’s trading at $3,241.96.
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