The Qraft AI-Enhanced US Large Cap Momentum ETF (NYSE:AMOM), an exchange-traded fund driven by artificial intelligence, has acquired new stakes in Nvidia Corp. (NASDAQ:NVDA), Home Depot Inc. (NYSE:HD) and Shopify Inc. (NYSE:SHOP), while entirely divesting its holdings in Netflix Inc. (NASDAQ:NFLX), Merck & Co. Inc. (NYSE:MRK) and AutoDesk Inc. (NASDAQ:ADSK).
What Happened: The ETF’s latest portfolio after rebalancing in early January showed that it has also entirely divested its holdings in cybersecurity solutions provider Fortinet Inc. (NASDAQ:FTNT) and streaming platform Spotify Technology S.A. (NYSE:SPOT).
The ETF, which has assets under management of $32.05 million, has a history of accurately predicting the price movements of electric vehicle maker Tesla Inc.’s (NASDAQ:TSLA) shares.
The fund continues to have Tesla as its largest investment with an 8.8% weighting, followed by graphics chipmaker Nvidia with a weighting of 8.1% and home improvement retailer Home Depot with 5.9% weighting.
The other two stocks that make up the top five holdings in the AMOM portfolio are Canada-based e-commerce company Shopify with a 4.5% weighting and software company Adobe Inc. (NASDAQ:ADBE) with 4.1%.
The ETF had Tesla, Netflix, Merck, Autodesk and Fortinet as its five largest holdings in December.
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’s latest rebalancing shows that it is bullish on Tesla, Nvidia and Home Depot, noting that Tesla’s stock price has risen more than 18% since its addition to the fund’s holdings in December.
The gains by Tesla’s stock also come even as major shareholders such as CEO Elon Musk and Cathie Wood’s Ark Invest Management have significantly reduced their positions in the EV maker.
Tesla’s record deliveries in the fourth quarter are considered more impressive in the context of the semiconductor shortage, AMOM said.
Nvidia — which officially released its Omniverse metaverse platform in January — is expected to benefit from the digital trends due to its near monopoly on high-performance graphics processing units (GPUs) that will power augmented reality and the metaverse.
The fund expects home improvement retailer Home Depot to benefit from record-high home prices and new construction activity.
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