August 2021 Qraft ETF Rebalancing Key Takeaways

August 06, 2021 EDT

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. 

 

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-855-973-7880 or visit our website at www.qraftaietf.com. Read the prospectus or summary prospectus carefully before investing.

The Funds are distributed by Foreside Fund Services, LLC

Investing involves risk, including loss of principal. The Funds are subject to numerous risks including but not limited to: Equity Risk, Sector Risk, Large Cap Risk, Management Risk, and Trading Risk. The Funds rely heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, the Fund’s strategy may not be successfully implemented and the Funds may lose value. Additionally, the funds are non-diversified, which means that they may invest more of their assets in the securities of a single issuer or a smaller number of issuers than if they were a diversified fund. As a result, each Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. A new or smaller fund's performance may not represent how the fund is expected to or may perform in the long term if and when it becomes larger and has fully implemented its investment strategies. Read the prospectus for additional details regarding risks.


QRAFT AI-Enhanced U.S. Large Cap ETF: Companies in the health care sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of health care through outpatient services.

QRAFT AI-Enhanced U.S. Large Cap Momentum ETF: The Fund is subject to the risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund’s investments. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, the loss of patent, copyright and trademark protections, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market.

QRAFT AI-Enhanced US High Dividend ETF: Securities that pay dividends, as a group, may be out of favor with the market and underperform the overall equity market or stocks of companies that do not pay dividends. In addition, changes in the dividend policies of the companies held by the Fund or the capital resources available for such company’s dividend payments may adversely affect the Fund. In the event a company reduces or eliminates its dividend, the Fund may not only lose the dividend payout but the stock price of the company may also fall.

QRAFT AI-Enhanced U.S. Next Value ETF: The value approach to investing involves the risk that stocks may remain undervalued, undervaluation may become more severe, or perceived undervaluation may actually represent intrinsic value. Value stocks may underperform the overall equity market while the market concentrates on growth stocks. The small- and mid-capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic evens than larger, more established companies, and may underperform other segments of the market or the equity market as a whole. Securities of small- and mid-capitalization companies generally trade in lower volumes, are often more vulnerable to market volatility, and are subject to greater and more unpredictable price changes than larger capitalization stocks or the stock market as a whole.

Alpha – Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.

AutoML – Short for Automated Machine Learning, AutoML is the automation of the machine learning process to make machine learning jobs simpler, easier, and faster.

Kirin API - Developed by Qraft’s data scientists, integrates multiple vendors to provide both macroeconomic and company fundamentals with the correct point-in-time data.