This Robot-Run ETF Of Tesla Fame Sold Snapchat, AMD In August And Loaded Up On These Big Tech Stocks Instead

This Robot-Run ETF Of Tesla Fame Sold Snapchat, AMD In August And Loaded Up On These Big Tech Stocks Instead

The Qraft AI-Enhanced US Large Cap Momentum ETF AMOM, an exchange-traded fund driven by artificial intelligence, bought into Inc. AMZN, Facebook Inc. FB, Nvidia Corp. NVDA and Adobe Inc. ADBE in August.

What Happened: The ETF’s latest portfolio, after rebalancing in August, showed that the fund has sold major chunks of its holdings, or entirely divested in, chipmaker Advanced Micro Devices Inc. AMD, Snapchat parent Snap Inc. SNAP and communications technology company Zoom Video Communications Inc. ZM.

In addition, the fund has divested its stakes in medical device company Align Technology Inc. ALGN and streaming company Roku Inc. ROKU.

The ETF became popular over accurately predicting the price movements of Tesla Inc. TSLA shares in multiple instances.

The fund now has as its largest investment with an 8.0% weighting, followed by Facebook with a weighting of 7.9% and Nvidia with 6.1% weighting.

The other two stocks that make up the top five holdings in the AMOM portfolio are retail giant Walmart Inc. WMT with a 4.8% weighting and home improvement retailer Home Depot Inc. HD with 4.2%.

Prior to the rebalancing, the ETF had Advanced Micro Devices, Snap, Zoom Video, Align Technology and pet healthcare company IDEXX Laboratories Inc. IDXX as its five largest stock holdings.

See Also: Whole Foods To Get Amazon's Cashier-Less Technology: What Investors Should Know

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 15.1%, compared to its benchmark – the Invesco S&P 500 Momentum ETF SPMO – which has returned 20.5% so far this year.

The fund’s latest rebalancing shows it has turned bullish on tech and retail stocks amid the economic reopening, while reducing its stake in companies such as Snap and Zoom Video that have benefited from the COVID-19 pandemic.

It was reported last week that Amazon has started to transport cargo for outside customers as part of its efforts to grow its shipping business. The company also reportedly plans to launch Amazon-branded TVs as soon as October in the United States.

Facebook, which launched the Horizon Workrooms app last month, has intensified its focus on the augmented reality (AR) and virtual reality (VR) segments in recent years.

Price Action: AMOM shares closed almost 0.4% lower in Wednesday's trading at $36.88.

Posted In: artificial intelligencebig techsocial mediaLong IdeasNewsBroad U.S. Equity ETFsShort IdeasTrading IdeasETFs

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.