ADPV ETF: May’s Strong Market Recovery and Tech Gains
ADPV ETF Recap: May 2024
The streak of outperformance now sits at six months, following a solid May for the Adaptiv Select ETF. While the S&P 500 was up a little over 5% for the month, ADPV finished with an 8.24% gain1:
That now brings the YTD (through 5/31/24) return to 27.87%:
Holdings Recap
The Adaptiv Select strategy held some nice gainers for the month, including The Gap (GPS), Kendryl Holdings (KD), Vistra (VST), Robinhood Markets (HOOD), AppLovin (APP), and News Corp (NWS):
Holdings that were negative for May included Nutanix (NTNX), Informatica (INFA), Planatir Technologies (PLTR), and KeyCorp (KEY):
Overall Sector Exposure
Underneath the surface, there continues to be some shifting in regards to sector exposure. Financials (29%) and Technology (22%), remain the two largest sectors in ADPV. Energy has doubled from 3 to 7% and Communication Services has from 3 to 5%. On top of that, there is no Healthcare exposure, which has remained consistently low2:
*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4
Compared to its benchmark, ADPV remains overweight Utilities, Real Estate, Industrials, Financials, and Energy:
There were a total of four buys and sells for the month:
Market Commentary from a Technical Perspective
Markets put in a strong rebound for May, following the first negative month of the year in April. This should come as no surprise, as the S&P 500 has been in a strong uptrend since late October 2023. And we know in these types of trending markets, we want to err on the side of continuation, which in this case means higher.
The Nasdaq 100, and specifically the Tech sector also had a strong month, showing signs that the outperformance from growth-y stocks may not be over. While participation has dropped up, with the Russell 2000 still struggling to climb out of its two-year base, markets still remain healthy overall.
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.
Distributed by: Quasar Distributors, LLC.
"For Institutional Investors Use Only. Not for Use with the Retail Public"
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.
Distributed by: Quasar Distributors, LLC.
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 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.
Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.
Investment advisory services are provided by Client First Investment Management LLC, an SEC-registered investment adviser. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.