The Qraft AI-Enhanced US Large Cap ETF (NYSE:QRFT) has retained its holdings in “big tech” companies such as Microsoft Corp. (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), while reducing or divesting its stake in Facebook Inc. (NASDAQ:FB).
What Happened: The exchange-traded fund, which is driven by artificial intelligence, has removed social media giant Facebook from its top 10 holdings even as the social media giant continues to be in SDPR S&P 500 ETF Trust’s (NYSE:SPY) top 10 holdings.
The ETF’s latest portfolio after rebalancing at the end of September showed it now has electric vehicle maker Tesla Inc. (NASDAQ:TSLA) among the top 10 holdings in its portfolio with a 1.4% weightage.
The ETF continues to have Microsoft as its largest investment with a 3.2% weighting, followed by Apple with a weighting of 2.8% and Alphabet with 2.0% weighting.
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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 10.3%, compared to the SPDR S&P 500 ETF Trust that has returned 17.1% so far this year.
Tesla has ended up among the top 10 QRFT holdings amid the rebalancing. It isn’t immediately clear if the ETF acquired a new stake in the electric vehicle maker or this was a result of the shuffling in other stocks.
Last week, Tesla reported strong third-quarter deliveries that beat the expectations of most analysts even amid the chip shortages and demand slowdown in China.
Tesla CEO Elon Musk said at a company shareholder meeting on Thursday that the EV maker would move its headquarters to Austin, Texas from Palo Alto, California.
Price Action: QRFT shares closed almost 1% higher in Thursday’s trading at $42.55.
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