ADPV: Marching Through Q1 with Stellar Outperformance
ADPV ETF Recap: March 2024
The Adaptiv Select ETF (ADPV) capped off Q1 with another stretch of strong outperformance. For the month of March, ADPV was up 9.12%1, with the S&P 500 (the fund’s respective benchmark) up 3.43%:
That now brings the YTD (through 3/28/24) return to 20.49%:
Holdings Recap
The portfolio’s overweight positioning in Financials and Industrials helped this month, as most of the Technology names in the fund were the lowest performers as well. Holdings such as Vistra (VST), NRG Energy (NRG), Vertiv (VRT), Rocket Companies (RKT), Core & Main (CNM), and Corebridge Financials (CRBG) were standout leaders for the month:
Holdings negative on the month include Palantir Technologies (PLTR), Viatris (VTRS), News Corp (NWS), Kyndryl Holdings (KD), Uber (UBER), and Affirm Holdings (AFRM):
Overall Sector Exposure
In regards to overall sector exposure, the same themes still apply. Technology is still the largest sector by weight. Industrials lessened, with the sale of XPO, which was a 56.5% gain from the entry on 11/6/2023. Financials grew from 20% to 26% exposure.2
*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4
Compared to its benchmark, ADPV remains overweight Tech, Financials, Industrials, Real Estate, and Utilities:
There were a total of two buys and sells for the month:
Market Commentary from a Technical Perspective
While the broad indices may have cooled off (relatively speaking) in March, momentum strategies continued to put in a strong start to 2024. We continue to see strong performance from Small and Mid Caps, while areas like Mega Cap Tech - the bellwether of 2024 - are trading more in line with the major indices.
There continue to be signs that a switch from Value to Growth could be in the cards for the remainder of the Spring and Summer, which would be a welcome scenario. Two sectors we would expect to see near the top, should this indeed play out, are Industrials and Financials. ADPV is currently overweight these two areas, with potentially more names in the pipeline in the coming weeks and months, should their momentum continue.
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.
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.