ADPV is Riding Momentum Waves Amidst April’s Shifting Tides
ADPV ETF Recap: April 2024
Following an impressive Q1, the broad market was down for the month of April with a loss of 3.97%. However, the Adaptiv Select ETF was able to put in yet another month of outperformance - down 3.49% - bringing the streak to five months1:
That now brings the YTD (through 4/30/24) return to 15.29%:
Holdings Recap
The Adaptiv Select strategy did have a few notable holdings with positive returns for the month, including Vertiv (VRT), Vistra (VST), NRG Energy (NRG), Rithm Capital (RITM), and AppLovin (APP):
Holdings that were negative for April include Informatica (INFA), Elanco Animal Health (ELAN), DraftKings (DKNG), The Gap (GPS), Park Hotels (PK), and Kyndryl Holdings (KD):
Overall Sector Exposure
In regards to overall sector exposure, there has been a shift. Technology has dropped down to a 22% overall weighting, from 37%. Financials have grown to 29% from 26%, with the addition of KeyCorp (KEY). Industrials also nudged up slightly in exposure, from 11% to 14%.2
*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4
Compared to its benchmark, ADPV remains overweight Utilities, Real Estate, Industrials, and Financials:
There were a total of four buys and sells for the month:
Market Commentary from a Technical Perspective
April was the first negative month of the year for the major indices, yet momentum strategies held up quite well. As we know, there are strong, long-term technical tailwinds in the market right now. On top of that, outperformance during a down month from a higher beta, concreted portfolio such as ADPV, is a positive sign as well.
While there hasn’t been a lot of edge from a ‘growth versus value’ perspective, markets remain healthy as there has been equal participation from both camps throughout 2024, much different than what we saw in 2023. The wind is at our back, and until that changes, corrections need to be treated as opportunities.
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.