This Robot-Run Large Cap ETF Has Shed Facebook Stake And Counts Tesla, Apple And These Stocks Among Top Holdings

The Qraft AI-Enhanced US Large Cap ETF QRFT has retained its holdings in “big tech” companies such as Microsoft Corp. MSFT, Apple Inc. AAPL and Alphabet Inc. GOOG GOOGL, while reducing or divesting its stake in Facebook Inc. 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 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. 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.

The other two stocks that make up the top five holdings in the QRFT portfolio are Vertex Pharmaceuticals Inc. VRTX and Amazon.com Inc. AMZN.

See Also: What Are The Chances Mark Zuckerberg Isn't Facebook CEO In 2 Years?

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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