PEP

PQUS · Weight decrease · 2d

The weight change for PEP in PQUS shows a period of consistent allocation, followed by a substantial step-down, then a smaller, consecutive reduction. This pattern aligns with Pictet's AI ranking system, which likely flagged PepsiCo's prolonged negative price momentum, reflected in its -6.1% 30-day and -16.7% 90-day returns, as a detractor from its US large-cap universe. The initial sharp decrease from 0.1400% to 0.0800% on July 10th, following days of stability, suggests a periodic rebalance event where the AI system significantly de-ranked the Consumer Staples stock. A further reduction to 0.0700% on July 11th indicates a sustained negative signal from the AI, potentially fine-tuning the portfolio's measured turnover in response to PEP trading at 81% of its 52-week high. This precise movement reflects the fund's specific methodology of layering sector-balance and concentration rules on top of its AI rankings.

weight 0.140% → 0.070% (-0.070 pp)·stock down 3.8% in the 30 days before

Jul 11·entry $138.49·now $135.46

LQAI · Exit · 1d

PEP, currently priced at $144.98, trades at 85% of its 52-week high after experiencing a -3.7% 30-day return and a -13.5% 90-day return, despite a +10.6% 1-year gain. This recent short-term price decline for a stock still trading near its yearly high likely triggered a re-evaluation within LQAI's Qraft AI ranking system, which rebalances weekly. While PEP maintains a 43.89% ROE and 4.29% revenue growth, the AI's algorithm, designed for core large-cap selection without heavy factor tilts, appears to have prioritized other signals. The incremental weight changes observed through late June and early July, culminating in a 0.00% weight on July 7th, suggest the AI determined PEP no longer met its dynamic criteria within the ~100-stock portfolio. This move aligns with LQAI's strategy, which occupies a space midway between broad and concentrated momentum approaches, indicating a precise, AI-driven recalibration for the Consumer Staples company.

weight 0.390% → 0 (exited)·stock up 2.0% in the 30 days before

Jul 7·entry $144.98·now $135.46

LQAI · Weight decrease · 2d

PEP’s PER of 22.22 and PBR of 9.67, paired with revenue growth of 4.29% and a 43.89% ROE, indicate a valuation and growth dynamic that Qraft’s AI, managing LQAI's core large-cap portfolio without heavy factor tilts, constantly re-evaluates against its universe of ~100 US large caps. The company's current price of $135.40, trading at 79% of its 52-week high, coincides with significant recent price underperformance, registering a 30-day return of -9.2% and a 90-day return of -17.9%. The Qraft AI selection engine, which rebalances LQAI weekly, likely interpreted this sustained negative price momentum, in conjunction with the stock's existing valuation metrics, as a signal to lower its conviction. Consequently, LQAI executed consecutive weight decreases for PEP, moving from 0.3700% on June 29th to 0.3600% on June 30th, reflecting the AI's responsive adjustment to the stock's weakening profile within its AI-driven ranking.

weight 0.390% → 0.360% (-0.030 pp)·stock down 6.1% in the 30 days before

Jun 30·entry $135.40·now $135.46

LQAI · Weight decrease · 3d

Currently trading at $140.71, PepsiCo sits at 83% of its 52-week high, having registered a 9.0% decline over the last 30 days and a 16.8% drop over 90 days, despite a positive 8.3% return over the past year. This recent price trajectory and position within its annual range likely informed the LG-Qraft AI's weekly rebalancing decisions for LQAI, an ETF focused on AI-driven name selection without a heavy factor tilt. While the company exhibits a 4.29% revenue growth and a 43.89% ROE, these metrics, alongside its 22.12 PER and 9.67 PBR, were re-evaluated by the Qraft engine in light of the stock's short-term underperformance. The consistent decrease in weight from 0.4100% to 0.3700% between June 10th and June 22nd indicates the AI's updated ranking signaled a reduced allocation for PepsiCo within the large-cap core universe at this specific price level and market context.

weight 0.400% → 0.370% (-0.030 pp)·stock down 5.7% in the 30 days before

Jun 22·entry $140.71·now $135.46

LQAI · Weight decrease · 2d

Operating under its Qraft AI ranking methodology for approximately 100 US large-cap core holdings, LQAI’s weekly rebalancing mechanism indicates a systematic reduction in its allocation to PepsiCo. The consecutive weight decrease, observed from 0.4000% on June 16th to 0.3800% by June 18th, implies a consistent re-evaluation by the AI engine. This adjustment likely stems from a reassessment of PEP’s recent market performance, evidenced by a 90-day return of -14.9%. Given LQAI’s AI-driven name selection without heavy factor tilt, the algorithm likely responded to this negative price momentum, despite the company's 4.29% revenue growth.

weight 0.400% → 0.380% (-0.020 pp)·stock down 5.6% in the 30 days before

Jun 18·entry $142.02·now $135.46

LQAI · Weight decrease · 2d

LQAI, managed through a LG-Qraft collaboration utilizing Qraft AI ranking for its ~100 US large-cap portfolio, initiated a weight decrease in PepsiCo (PEP) following its recent inclusion. This weekly rebalancing AI-driven selection engine likely responded to the stock’s recent performance, where PEP has registered a -8.3% 30-day return. The consecutive trimming from 0.4100% to 0.3900% suggests the core large-cap AI model, positioned between QRFT and AMOM, detected a diminishing relative appeal for the consumer staples company compared to other potential ~100 holdings. Such adjustments reflect the Qraft AI’s dynamic name selection process, which proactively pares back positions when its ranking system indicates a reduced signal for continued holding at prior levels.

weight 0.410% → 0.390% (-0.020 pp)·stock down 3.3% in the 30 days before

Jun 12·entry $144.27·now $135.46

LQAI · Exit · 1d

The AI ETF likely removed PepsiCo due to its stretched valuation, evidenced by a high P/E of 23.39 and an exceptionally high P/B of 9.67, despite strong ROE. The algorithm probably identified that the stock's price did not offer sufficient future upside or presented better opportunities elsewhere, especially for a consumer staples company. For a retail investor, this highlights the importance of scrutinizing valuation metrics, as even fundamentally strong companies can become poor investments if purchased at excessive prices. Overpaying for quality, even in defensive sectors, can significantly limit returns or increase risk.

weight 0.100% → 0 (exited)·stock down 2.6% in the 30 days before

May 12·entry $151.85·now $135.46

AIEQ · Exit · 1d

PEP currently trades at $144.19, having declined 8.5% over the last 30 days and 1.7% over 90 days, even as it sits at 85% of its 52-week high. AIEQ, managed by EquBot and employing IBM Watson NLP across a vast array of textual data, prioritizes daily rebalancing and rapid response to shifts in both fundamentals and sentiment for its broad market portfolio. Despite PEP's 4.29% revenue growth and 43.89% ROE, the recent downward price trajectory likely indicated a deteriorating sentiment or outlook detected by the NLP engine, causing its daily ranking to fall. The gradual reduction in position from 0.2400% to 0.2200% over the week, before its full removal on May 30th, reflects AIEQ's characteristic high turnover and immediate divestment upon identifying a sustained negative signal that outweighed the company's historical financial figures or its 22.57 PER.

weight 0.230% → 0 (exited)·stock down 7.1% in the 30 days before

May 30·entry $141.52·now $135.46

QRFT · Exit · 1d

The AI ETF likely removed PepsiCo due to its high valuation metrics, specifically the elevated PBR of 9.67 and PER of 24.19, which, despite strong ROE, might not align with its modest 4.29% revenue growth within the fund's investment criteria. Retail investors should recognize that even fundamentally strong companies can become overvalued, and relying solely on profitability without considering price-to-earnings or price-to-book can lead to holding assets an AI might deem inefficient.

weight 0.480% → 0 (exited)·stock down 1.5% in the 30 days before

May 4·entry $154.59·now $135.46

QRFT · Weight decrease · 2d

weight 0.530% → 0.500% (-0.030 pp)·stock down 4.2% in the 30 days before

Apr 8·entry $154.80·now $135.46

QRFT · Weight decrease · 2d

weight 0.520% → 0.490% (-0.030 pp)·stock down 6.2% in the 30 days before

Apr 1·entry $154.65·now $135.46

QRFT · Weight decrease · 2d

weight 0.500% → 0.480% (-0.020 pp)·stock down 7.1% in the 30 days before

Mar 19·entry $152.74·now $135.46