$Apple (AAPL.US)$ is often touted as an all-weather stock but one exchange-traded fund, powered by artificial intelligence, has deemed it fit to dump its entire Apple holdings and switched its allegiance to a chipmaker.
What Happened: $Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM.US)$ had a 7.96% of its portfolioâ€s weight in Apple in April but sold the entire stake in May. Incidentally, Apple was the fund's top holding in April.
The fund opened a fresh position in $NVIDIA (NVDA.US)$ in May. The chipmaker, which has seen its stock rally strongly this year on the back of AI momentum, is now AMOM's top holding, accounting for 7.99% of the portfolio.
$Meta Platforms (META.US)$ was the third biggest holding of AMOM, with a weighting of 6.62%.
Big Retail Bets: AMOM also added a slew of retail stocks to its portfolio, potentially reflecting its confidence in consumer spending and in turn the economy. Significant retail stocks added included:
$Walmart (WMT.US)$: 7.84% weighting
Auto parts retailer $AutoZone (AZO.US)$: 2.99%
$TJX Companies (TJX.US)$: 2.98%
$Starbucks (SBUX.US)$: 2.87%
The fund already holds shares of $Home Depot (HD.US)$ (5.21% weighting), $O'Reilly Automotive (ORLY.US)$ (3.08% weighting) and $Lowe's Companies (LOW.US)$ (2.72% weighting).
Pharma Out Of Favor: AMOM also cashed out of big pharma names in May. It divested its entire stake in $Eli Lilly and Co (LLY.US)$, $Vertex Pharmaceuticals (VRTX.US)$ and $Regeneron Pharmaceuticals (REGN.US)$. In April, these three stocks accounted for 6.52%, 3,23% and 3% of the portfolio, respectively.
The fund also sold all of its $Monster Beverage (MNST.US)$ holding. The beverage distributor previously accounted for 2.72% of the portfolio weighting.
At last check, AMOM traded at $28.46, down 0.14%.