Momentum Meets Volatility: ADPV’s February Recap & Strategy Shifts

ADPV ETF Recap: February 2025

The Adaptiv Select strategy continued its strong momentum into the first half of February, but fell to -3.59% on the month with the broad market selloff. The S&P 500 was also down for the month, with a return of -1.27%:1

 

Through the end of February, YTD performance stands at 5.87% for ADPV and 1.38% for the S&P 500:

 

Holdings Recap

Deposit the negative performance, the strategy did hold a handful of winners for the month, including Exelixis (EXEL), AT&T (T), Fox Corp (FOX), NiSource (NI), Palantir Technologies (PLTR), Antero Midstream (AM), and Williams Companies (WMB):
 

 

 

Holdings that had the lowest returns for the month included Blue Owl Capital (OWL), Carnival Corp (CCL), SoFi Technologies (SOFI), Amer Sports (AS), Virtu Financial (VIRT), Robinhood Markets (HOOD), and AppLovin (APP):2

 

Overall Sector Exposure

Following February reconstitution, there are a few slight shifts to sector weightings. Financials exposure dropped from 30% to 24%. Technology jumped from 23% to 27%. Energy and Industrials both dropped 2% in overall exposure, while Communication Services jumped 4%.

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

 

 

Similar to last month, ADPV is overweight Financials, Energy, Consumer Discretionary, Communication Services, and Utilities:

The Adaptiv Select strategy saw just three holdings exchanged over the course of February:

 

Market Commentary from a Technical Perspective

While we are still in the midst of the “strongest six months of the year”, February did not pass without some true volatility, most of which came in the final two weeks of the month. Breadth has remained somewhat stable under the surface and we are still above a rising 200-day moving average for the S&P 500. On the other hand, the Russell 2000 continues to disappoint. And while still in a relative uptrend, Magnificent 7 names continue to underperform. And while we may not own any in the strategy, they can be a big tailwind (or headwind) for major indices like the S&P 500 or Nasdaq 100.

Two weeks ago, David and Ian laid out the bearish thesis in markets, a bit of which has played out so far. However, as we stand today, the likelihood of a strong, multi-month downturn remains weak. But as all market participants know, that can change at any moment. Should the S&P 500 drop below its own respective long-term moving average, ADPV will move into protection mode.  

 

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ADPV is adapting to market shifts—now’s the time to get on board! Invest Now ⟶

 

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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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