ADPV Returns to Outperformance in October

ADPV ETF Recap: October 2024

After trailing its benchmark in September, the Adaptiv Select ETF was able to bounce back with a strong overall performance for October, up over 4% with the S&P 500 slightly negative.1

 

ADPV performance for the year (through 10/31/24) now stands at 32.11%. Its benchmark, the S&P 500, has a YTD return of 19.62%:

 

Holdings Recap

Unsurprisingly, ADPV did hold a few solid winners for the month, and given that we are in the midst of earnings season, we know how tricky things can be. Notable moves for October included AppLoving (APP), Viking Therapeutics (VKTX), Palantir Technologies (PLTR), Nu Holdings (NU), Gates Industrial (GTES), Corebridge Financial (CRBG), and Huntington Bancshares (HBAN):

 

 

 

The worst performers for the month of October were Rocket Companies (RKT), AGNC Investment Corp (AGNC), Antero Midstream (AM), Amcor (AMCR), and MGIC Investment Corp (MTG):

 

Overall Sector Exposure

For the first time in a few months, ADPV actually saw a drop in its exposure towards the Financial sector, moving from 51% to 44%. Utilities saw the addition of one stock, and Energy is now up to two holdings. Healthcare now just has one name in the sector.2

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

 

 

Compared to its benchmark, ADPV is overweight Financials, Energy, Utilities, and Real Estate:

October saw another month of strong reconstitution in the portfolio, with seven buys and sells in for the month, which was the same amount we saw in September. As mentioned above, exposure to Financials has decreased a bit, but remains a major overweight position. Earnings seasons can bring about lots of movement, and this latest round of reports has certainly left the ADPV very active over the last 60 days or so:

 

Market Commentary from a Technical Perspective

October really bucked a lot of seasonal weakness/choppiness that we typically see this time of year. In fact, this has been the best YTD start for stocks in an election year since 1936. We also now begin our journey through the most bullish six-month period, November through April. With that said, there will most likely be some election volatility, as many traders and institutions make their bets on what the election results mean for the market and the economy. What those trends and themes are that emerge as leaders, no one knows at this point. But we will be able to name them as they start to develop on price charts in the coming weeks and months.

 

 

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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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