Famed AI-Based ETF Slashed Tesla Holding In May, Bought Snapchat And These Stocks Instead

What Happened: The ETF’s latest portfolio after rebalancing at the beginning of June showed that the fund continues to have social media giant Facebook Inc. FB as its largest stock holding.

However, the Facebook holding has been trimmed somewhat to account for 8.0% weight in the ETF's portfolio from 8.2% previously, while second-placed Walmart Inc.’s WMT weight has risen to 6.5% from 4.2% earlier.

The other three stocks that make up the top five holdings in AMOM include home-improvement retailer Home Depot Inc. HD, Adobe Inc. ADBE, and Texas Instruments Inc. TXN.

Last month, the ETF had Tesla as its third-largest stock holding, behind Facebook and e-commerce giant Amazon. Prior to the rebalancing, Amazon had accounted for 7.6% of the AMOM portfolio and Tesla had accounted for 5.5%.

Qualcomm now has a 3.1% weighting in the AMOM portfolio, while Snap has been added to the portfolio with a 2.2% weighting.

Tesla and Amazon no longer feature among the top holdings in the AMOM portfolio.

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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 9.81%, compared to its benchmark – the Invesco S&P 500 Momentum ETF SPMO – which has returned just 4.5% so far this year.

Price Action: Tesla shares closed 1% higher in Monday’s trading at $605.13, while Amazon shares closed almost 0.3% lower at $3,198.01.

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