August 2020: Week 4
Edition #008 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
Very excited to have crossed over 209 subscribers to FinLister Weekly. Considering we are just 8 weeks into this newsletter I’m humbled to see so many people tuning in every week. 63 of you have read every issue we’ve sent your way. Keep it up!
Anyway, let’s jump right into it…
Weekly Changes:
Out of 114 Tech ETFs analysed, the average ETF had a relatively strong week last week, gaining on average 2.06%.
Although, this under-performed the S&P 500 which had a rise of 2.47%.
The top 5 ETFs of the week all outperformed in comparison to last week as well, ranging from 5.73% to 9.04% returns (4.8-8.8% through the period before, and 2-3% the week before that).
TECL clinched the top spot for 2 consecutive weeks now. Outpacing 2 other levered ETFs in the top 5 (ROM and SOXL).
The top stock from this cohort was NTNX (Nutanix, a cloud computing company with support in infrastructure, storage and other cloud services) which rose 30% on Friday after news that CEO/Founder/Chairman Dheeraj Pandey will be stepping down as CEO. Additionally, Bain Capital publicized a $750m investment in the company.
CRM (Salesforce) also had an impressive week after releasing positive Q2 earnings, and now sits with a $244b market cap.
On the bottom end of things, things were more mild than last week. E-commerce player ETSY (Etsy) dropped 10% amidst the release of a proposed bill in California that would “hold online retailers accountable for injury liability the same way brick-and-mortar retailers are. Amazon is supporting the bill, which Etsy and other online retailers oppose" according to NBC News.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits at 24.6% (up from 19% last week). The S&P 500 which also held onto its strong past four weeks of gains and has maintained it’s strong position inside positive territory at 9.1% YTD.
The top 5 constituents were relatively the same compared to last week.
ARKW and ARKK once again switched positions.
CWEB held into 4th.
FNGS pushed OGIG out of the top 5 and moved WCLD into 5th position.
MCRB (Seres Therapeutics Inc), continued to hold onto the top spot of US stocks from this cohort. And has stabilized after a volatile last two weeks.
TSLA also had a modest 5% gain throughout the week, allowing it to cross 402% return YTD in anticipation of their 5-for-1 stock split happening today (Monday August 31st).
On the other end of the table the bottom 5 ETFs all had a down week given the positive moves in the market. The worst performing ETF SOXS (Direxion Daily Semiconductor Bear 3x Shares) continued its run at the bottom despite a 9% drop from TECS).
On the stock side of things, we see a similar group to past weeks. With LX (LexinFintech Holdings) falling below MOMO (Momo Inc) which had a marginally positive week. QD (Qudian) rounding out the bottom of this group again.
That’s it for this week. Stay tuned for a special edition this week, as I release an August recap in the next couple of days.
As always, hope this issue gives you a better footing to start the week off on.
Thanks again for reading,
Best,
Stuart