Adaptiv Select ETF Outshines S&P 500 in July

ADPV ETF Recap: July 2024

The Adaptiv Select ETF was back on track in July, outpacing the S&P 500 by over 180 basis points1: 

 

That now brings the YTD (through 7/31/24) return to 25.10%, still pacing ahead of its benchmark:

 

Holdings Recap

The Adaptiv Select ETF owned a number of stocks that put in strong performance for July, including Rocket Companies (RKT), Virtu (VIRT), Gates Industrial (GTES), MGIC Investment (MTG), Huntington Bancshares (HBAN), Key Corp (KEY), Frontier Communications (FYBR), FNB Corp (FNB), and Rithm Capital (RITM).

 

 

The worst performers for the month of July were Robinhood Markets (HOOD), Vistra (VST), Macy’s (M), and Antero Midstream (AM).

 

Overall Sector Exposure

Financials, which were already the largest weighting in ADPV, saw another big jump in July and is now up to 47% exposure. Most of that came from Technology, which saw a drop from 22% to 9% this month. Communications Services saw a slight bump and Industrials saw an equivalent decrease in exposure2:

*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4

 

Compared to its benchmark, ADPV remains overweight Utilities, Industrials, Financials, Communication Services and Energy:

 

July saw an above average month for trading and reconstitution. After no trades in June, the Adaptiv Select strategy saw seven buys and sells for the month of July:

 

Market Commentary from a Technical Perspective

Following strong months in May and June, equity markets were a little quieter in July, with the index up around 1%. The S&P 500 was actually negative heading into the final days of the month, but a nice pop at the end was enough window washing to keep us green.

Overall, momentum has gotten a little weaker than we had seen for much of 2024, similar to what we saw entering April. However, as expected with the backdrop of a strong bull market, that correction did not last very long. We are now embarking on a weaker time of the year, historically, when looking at seasonality. With this being an election year, August and September are typically not a smooth ride, at least relative to other stretches on the calendar. We will see if that comes to fruition in 2024 as well.

The big picture is still intact: we are above 4800 on the S&P 500 and we have an upward-sloping 200-day moving average. On top of that, breadth has improved with the recent weakness in Tech. 

 

 

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1 The performance quoted represents past performance and does not guarantee future results. The investment return and principal will fluctuate. Investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For the most recent month-end performance and standardized performance, please visit www.adpvetf.com.
2 Holdings are subject to risk and change. You can find a full list of up-to-date holdings HERE.

 

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus and Summary Prospectus, which may be obtained by visiting https://adpvetf.com/investor-materials. Read the prospectus and Summary Prospectus carefully before investing.

 

Investing involves risk, including possible loss of principal.

To the extent the Fund’s investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund’s investments were more broadly diversified. Active management by the Adviser in selecting and maintaining a portfolio of securities that will achieve the Fund’s investment objective could cause the Fund to underperform compared to other funds having similar investment objectives. For longer periods of time, the Fund may hold a substantial cash position. If the market advances during periods when the fund is holding a large cash position, the Fund may not participate to the extent it would have if the Fund had been more fully invested The Adviser relies heavily on a quantitative model developed by the Adviser, which is used to value and rank investments or potential investments, to provide risk management insights and to assist in reducing extending declines in in the Fund’s net asset value. When models and data prove to be incorrect, misleading, or incomplete, any decisions made in reliance thereon will expose the Fund to risks.

 

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