September’s Rocky Start, Strong Finish for ADPV ETF
ADPV ETF Recap: September 2024
Early September saw rough sailing for most of the market, with broad indices (namely the S&P 500 and Nasdaq 100) rebounding to end the month, with ADPV slightly trailing for the timeframe.1
That now brings the YTD (through 9/30/24) return to 28.35%. ADPV’s benchmark - the S&P 500 - has a YTD return of 20.81%:
Holdings Recap
The Adaptiv Select ETF did hold a few names that were positive on the month, with returns mainly carried by Palantir Technologies (PLTR) and Robinhood Markets (HOOD). Other notable stocks for September included Kinder Morgan (KMI), SLM Corp (SLM), AT&T (T), Highwoods Properties (HIW), and AGNC Investment Corp (AGNC):
The worst performers for the month of September were Organon (OGN), Nu Holdings (NU), Roivant Sciences (ROIV), First Horizon Corp (FHN), F.N.B. Corp (FNB), RIthm Capital (RITM) and Rocket Companies (RKT):
Overall Sector Exposure
Financials, which have been the largest weighting in ADPV for three months, saw another addition to the portfolio (Regions Financial - RF). The sector has grown to 51% of the strategy. Overall, there were very few changes in sector weightings for the month2:
*Concentration guidelines for ADPV are based on GICS Sub-Industry/Tier 4
Compared to its benchmark, ADPV is overweight Financials and Real Estate:
August saw an above average rate of reconstitution, at least early in the month, with 7 buys and sells in September:
Market Commentary from a Technical Perspective
While September did get off to a rocky start, in line with what we would expect from seasonality, it finished quite strong, hitting another all-time high on 9/17. This is on par with the expectations we have put forth for almost an entire year at this point. As long as we are above 4800 - and shorter term, above 5250, the market will be fine. Lots of anxiousness around the election. And plenty of bricks in the proverbial “wall of worry”. As we have always said, don’t let these headlines fool you: the trend remains up. And we want to be involved.
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.