ADPV Achieves Solid February Growth

ADPV ETF Recap: February 2024

The Adaptiv Select ETF (ADPV) continues to build off a strong Q4 and January with another solid month of performance. For February, ADPV was up 11.81%1, with the S&P 500 (the funds respective benchmark) up 5.17%:

 

Holdings Recap

Earnings season can always be a little tricky, especially in a fund that pays no attention to the fundamental aspects of a company’s stock.

We are pleased with the reactions to earnings we saw from the portfolio, which we feel is more important than the earnings numbers themselves. Names such as Palantir Technologies (PLTR), AppLovin (APP), XPO (XPO), Vistra (VST), Vertiv (VRT), and Uber (UBER) had the most positive impact on the fund in February, with all returning 20%+ during the month.2

 

There were only two stocks in ADPV that were negative for the month, Affirm Holdings (AFRM) and XP (XP):

 

Overall Sector Exposure

In regards to overall sector exposure, the same themes still apply. Technology is still the largest sector by weight. Energy fell back to just 1 holding, after Antero Midstream (AM) was sold. Financials remains the second largest sector in ADPV, and had one additional stock purchased this month, which was SLM Corp (SLM).

Industrials remain in third, and had the strongest month overall from a performance perspective:

 

Compared to its benchmark, ADPV remains overweight Tech, Financials, Industrials, and Utilities:

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

 

There were a total of 4 buys and sells for the month:

 

Market Commentary from a Technical Perspective

We mentioned in our last update the S&P 500 joined both the Nasdaq 100 and Dow Jones Industrial Average as major indices to (finally) eclipse their 2021 highs. We also mentioned this gives more credence to the idea that we want to be involved in this market.

Investors should be positioned to take advantage of the trend, until it ends. And thus far, we have no sign yet that the bullish behavior in broad indices is coming to an end. Sure, a few things are going on ‘under the surface’ that may give us pause, but price is price.

And price continues to say the short-, intermediate-, and long-term trends are all up. In fact, the Russell 2000 still hasn’t joined the party, from a big-picture perspective, as it is still hovering around the 2000-2100 level. Should small caps move higher, it would be yet another tailwind to an already bullish environment.

 

 

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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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