An A.I.-Driven Exchange Fund Bought $1.4 Billion Worth of Tesla (TSLA) Shares This Month

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Did you know that there’s an exchange-traded fund that is driven by artificial intelligence? That fund, the Qraft AI-Enhanced US Large Cap Momentum ETF (AMOM), bought around $1.4 billion worth of Tesla (TSLA) shares earlier this month. It did so earlier this month.

Tesla is now the third-largest stock holding of the robot ETF. The fund’s top stock is Amazon, followed by Facebook, and then Tesla. Benzinga reported that Tesla now accounts for more than 5% of the fund’s portfolio. MarketWatch noted that the fund has a history of accurately predicting the price moves of Tesla shares. Earlier this year, the fund sold its entire Tesla holdings before the start of February when Tesla’s shares were near their all-time high of $900.40.

How AMOM Determines Which Stock To Buy Or Sell

AMOM, which has delivered year-to-date returns of 3.7% at the time of this writing, is a product of Qraft, a South Korea–based fintech group. It tracks 50 large-cap U.S. stocks and reweights its holdings on a monthly basis. Benzinga noted that the fund uses artificial intelligence to search automatically for patterns that have the potential to produce excess returns. Based on that data, the fund constructs actively managed portfolios.

MarketWatch elaborated a bit more on this, noting that artificial intelligence capitalizes on the movements of existing market trends. Then it makes the decision to add, remove, or reweight its holdings. It scans the market and uses predictive power to analyze various patterns that show the stock market’s momentum.

That article pointed out that one of AMOM’s notable achievements was its correct anticipation of Tesla’s stock price moves. AMOM also includes Home Depot (HD), Nvidia (NVDA), and Adobe (ADBE) in its portfolio.

So, even artificial intelligence is investing in a clean energy company. There’s hope for humanity after all!

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

CleanTechnica Holiday Wish Book

Holiday Wish Book Cover

Click to download.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.

Johnna Crider

Johnna owns less than one share of $TSLA currently and supports Tesla's mission. She also gardens, collects interesting minerals and can be found on TikTok

Johnna Crider has 1996 posts and counting. See all posts by Johnna Crider