An exchange-traded fund driven by artificial intelligence booted Tesla and Amazon from its portfolio in June, instead choosing to load up on shares of companies including Qualcomm, Snap and GameStop.
The Qraft AI-Enhanced U.S. Large Cap Momentum ETF, trading as AMOM AMOM, -0.34% on the New York Stock Exchange, removed major technology companies from its portfolio this month, as it shifted to favor retailers and other post-pandemic trades.
This was when a flock of investors, largely organized on social media platform Reddit, helped squeeze hedge funds’ short positions on companies including GameStop, cinema chain AMC AMC, -10.37%, and tech group BlackBerry BB, -4.05% earlier this year. The trading frenzy caused multibillion-dollar losses for hedge funds, unbelievable gains for individuals that timed it right, and ushered in a new era of internet-inspired trading.
“Few fund managers would take the risk of adding a meme stock to their portfolios, but Qraft’s AI model has no such prejudices,” said Geeseok Oh, a managing director at Qraft and the head of its Asia-Pacific business. “This month, AMOM’s portfolio appears to be shifting towards post-pandemic trades, a bit more diversified of a portfolio from the previous month’s big tech-heavy strategy,” said Oh.
AMOM has been listed in New York since May 2019, and has delivered total returns of 11% so far in 2021 and 53% in the past year — outpacing its benchmark, the S&P 500 Momentum index, which has climbed a comparable 26% in the past year.
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