August 2021 Qraft ETF Rebalancing Key Takeaways

Monthly Update
Written By Hyungsik Kim

With the delta variant spreading, mask restrictions put back in place, and the CPI climbing to a 13 year high, it is easy for investors to wonder what to do in these times. Will the recovery continue, will we return to the way it was last year, or is this just a hiccup that will soon go away? All these could make investors want to sit on the sidelines and wait it out. At Qraft, our AI is always ready to play ball and three of our ETF’s rebalance each month. In this article, we break down the key takeaways from the August 2021 rebalancing. Make sure to subscribe to our newsletter so you don't miss any of our weekly performance updates and monthly rebalancing updates!


Qraft AI-Enhanced U.S. Large Cap ETF (NYSE: QRFT)

Key Takeaways

  • QRFT lowers weights of big tech stocks of MSFT, AAPL, AMZN in comparison to SPY

  • FB is not among the top 10 holdings for QRFT while it is for SPY. Facebook itself announced that earnings for the rest of the year are expected to take a fall.

  • The top 5 new stocks added to the portfolio (ENPH, AXON, ENTG, TER, SEDG) are all manufacturing companies and the top 5 holdings in the total portfolio (ALNY, CTXS, CERN, BLDP, VMW) are heavy in software.

Qraft AI-Enhanced U.S. Large Cap Momentum ETF (NYSE: AMOM)

Key Takeaways

  • AMOM includes pandemic trade names that were popular in the last few months such as SNAP, ZM, and ROKU (total representing around 13% of total holdings).

  • AMOM added AMD as the 1st top holding. AMD has shown strong momentum in the semiconductor industry.

  • AMOM held no shares of AMZN in July, avoiding Amazon's recent market correction after it missed Q3 guidance.

Qraft AI-Enhanced U.S. Next Value ETF (NYSE: NVQ)

Key Takeaways

  • Reduction of finance sector holdings may be an indication of the uncertainty from the Delta Variant spread at the U.S. and global level which may cause a further drop in U.S. treasury yield.

  • Intel is still NVQ’s top holding with a slight weighting increase.

  • NVQ added healthcare sector stocks while also increasing its weights in existing healthcare stocks, such as ANTM and CVS, brining those two into the top five holdings in the portfolio.

Mutikani, L. (2021, July 14). U.S. consumer prices post largest gain in 13 years; inflation has likely peaked.

Reuters. https://www.reuters.com/business/finance/us-consumer-prices-surge-june-2021-07-13/

Portfolio holdings are subject to change and should not be considered investment advice. 

Hyungsik Kim http://www.qraftec.com
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