An exchange-traded fund using artificial intelligence has correctly predicted Tesla stock moves, and recently made more portfolio selections.

The fund called the Qraft AI-Enhanced U.S. Large Cap Momentum ETF, going under the symbol AMOM,
on the NYSE.

The fund has given returns of 9% in 2021 and 79% in 2020. AMOM is a managed portfolio steered by AI which tracks 50 stocks and re-calibrates its holdings every month. It is based on a strategy of momentum, with the AI picking stocks to capitalize on market trends. The AI scans the market and uses its power to analyze patterns that reveal market momentum.

One of the fund’s achievements has been getting the price of Tesla’s stock right. The fund sold its shares right before the stock declined by 14% until it went even further down by 10% later on.

The AI behind AMOM has now made more recommendations to redirect the fund’s money at the end of March, including changing its holdings and adding new stocks.

Target
TGT,
+0.38%
was its largest addition. The retail company was up 3% this month, with the stock +15% so far this year. The AI might have picked up this due to its rotation into value stocks, in line with its inclusion of Walmart as its second-largest holding in March. Shares in Walmart have increased by over 7% since the AI selected it.

ServiceNow
NOW was another add, coming in after Target. Shares in the cloud software company have already increased near 10% this month, in a rebound that puts the stock higher by 4% this year.

Right behind Service Now in terms of portfolio size is Autodesk forming 2.16% of the fund’s portfolio. Shares in the software company are 6% higher since the start of the month.

Monster Beverage was another selection for April, included in the AMOM portfolio with a weight of right below 2%. The drink company’s is higher 5% in April and almost 6% this year.

The final stock that the AI liked for April was another stalwart: O’Reilly Auto Parts with a 1.8% allocation. Shares in the auto retailer are selling for only 1% higher since the start of the month, up 13% since 2021 started — so there could be higher gains on the way if the AI is right.

Author: Steven Sinclaire

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