Qraft reveals August rebalances for its core funds
South Korean firm Qraft Technologies has just undergone its August rebalancing for its three core funds: AMOM, a momentum ETF, QRFT, an ETF focused on delivering alpha, and NVQ, a value ETF focused on uncovering the next value stocks in the market.
The firm writes that its Large Cap Momentum fund ($AMOM) is shifting back into pandemic top-performing names like SNAP, ZM and ROKU as the Delta variant causes major concerns across the globe. The Large Cap ETF (QRFT) focused on generating Alpha reduced weightings in mega cap stock names such as MSFT and AMZN, removed Facebook from the top 10 holdings and removed other software names in August.
Qraft writes that its AI has identified several issues facing Facebook including: Apple’s privacy initiative which is expected to make an impact on Facebook’s advertising power. Also, increasing pressure from the Government, including negative comments from President Biden, about Facebook will have their impact and Facebook itself has announced the company anticipates weaker earnings for the remainder of 2021.
The firm’s Value ETF ($NVQ) continues to add to its Intel holdings after a strong earnings period and reduced financials exposure, with expectations the yield curve will flatten further.
All of the firm’s four ETFs are aided by AI that reduces Qraft’s investable universe by evaluating stocks based on specific metrics to make suggestions for underlying holdings and weightings.
Qraft writes that this provides them with an objective approach that has allowed it to uncover successful opportunities through their factor-based funds.
As an example, in 2020, Qraft found success in playing the TSLA trade correctly, selling TSLA in August 2020, re-buying in November of 2020 and selling in February 2021, all by the AI’s recommendation.