ADPV Hits Road Bump, Keeps Strong YTD Performance

ADPV ETF Recap: June 2024

The Adaptiv Select ETF hit its first road bump of the year in June, as participation in the market continues to wane. It was a big month for Mega Cap Tech, which pushed the S&P 500 to a 3.5% gain for the month. On the other hand, everything outside of those select names drastically fell off from a performance perspective1: 

 

That now brings the YTD (through 6/30/24) return to 24.94%, still pacing ahead of its benchmark:

 

Holdings Recap

The Adaptiv Select ETF owned a few positive stocks for the month, including Palantir (PLTR), Nu Holdings (NU), Informatica (INFA), Nutanix (NTNX), MGIC Investments (MTG), and News Corp. (NWS):

  

 

The worst performers for the month of June were The Gap (GPS), Gates Industrial (GTES), Park Hotels (PK), Rithm Capital (RITM), and SLM Corp (SLM):

 

Overall Sector Exposure

With no trades for the month of June, there was very little change in regards to sector weightings2:

*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, and Energy:

 

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

 

Market Commentary from a Technical Perspective

After a strong rebound in May, equity markets continued to move higher, exhibiting the exact behavior we have talked about here for many months. We have been – and continue to be – in a very strong market. While participation under the surface has certainly fallen off (by some readings, it’s arguably one of the worst breadth periods on record). However, the trends are the trends. We know how the indices are weighted, tilted towards a select few names. But those stocks look very strong as well. We are above 4800 on the S&P 500. Shorter term, we also remain above 5250 on the index. As long as we are above these levels of supply/demand, we need to continue to expect stocks to move higher, both in the near-term and over the coming 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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