December Dip, 2024’s Big Finish: ADPV’s 47.91% Gain!
ADPV ETF Recap: December 2024
Along with the rest of the market, the Adaptiv Select ETF faltered a bit in December, falling 5.70% on the month.1
ADPV performance for the year 2024 finished at 47.91%. Its benchmark, the S&P 500, had a YTD return of 25.59%. While the final month was not ideal, we are very pleased with the overall performance for the year:
Holdings Recap
As mentioned above, December was a rough month for the market across the board. The Adaptiv Select ETF saw a “reverse effect” from November, with just two holdings positive on the month, Palantir Technologies (PLTR) and Amer Sports (AS):
A majority of names in ADPV were down for the month, with holdings such as Toast (TOST), Regions Financial (RF), KeyCorp (KEY), MGIC Investment Corp (MTG), MDU Resources (MDU), Huntington Bancshares (HBAN), Pilgrims Pride (PPC), Coupang (CPNG), and Liberty Global (LBTYA):2
Overall Sector Exposure
With very little reconstitution in the month of December, there wasn’t much change to overall sector weightings within the strategy. Financials continue to be the top Sector, followed by Technology and Consumer Discretionary:
*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4
Compared to its benchmark, ADPV is overweight Financials, Energy, and Utilities:
December experienced a below-average level of trading, with just four sells and buys across the month.
Market Commentary from a Technical Perspective
We stated over a year ago that we felt the following months would see a strong upward trend for equities. And indeed, we have a very strong 2024, albeit with a somewhat rocky ending. As we head into 2025, we keep the same mindset. Just because the calendar has changed does not mean the trend has. We are still above a rising 200-day moving average. We are still above the 4800 (nearer term, 5650).
Those tell us that the market is still healthy. After back-to-back years of 20% returns for the S&P 500, it is easy to say that this year won’t be “as strong” or that we are “due” for a sizable correction. Again, this is not trend-following. The market will let us know if and when we should become defensive, and so far, there are still no signs on the horizon.
Momentum Meets Opportunity — Adapt your portfolio for 2025 with the ETF that outperformed: ADPV. Invest Now ⟶
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.