December 2020: Week 4

Edition #025 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.

Weekly Changes (Overall):

Out of 101 Tech ETFs analyzed, the average Tech ETFs had just managed to squeak out a positive week with a gain of 0.68% through the short holiday week, compared to the much stronger previous week which saw a rise of 3.55% across the board.

This weeks top 5 ETFs were again considerably smaller on average than the last weeks of fund sizes with just an average of $68m in AUM compared to an average of $471m in AUM and $1,404m in the prior two weeks.

This includes the top ranked Tech ETF for the week $SIMS (SPDR Kensho Intelligent Structure ETF) having just $21m AUM. While being active since 2017 it will be interesting to see how this ETF continues into the future.

It ranked 44 and 45th through 2018 and 2019 respectively, very middle of the road results and this year is currently sitting at 76th/101 even including this “strong” last week.

With 7,000-9,000 shares trading hands around $40, $320,000/volume day may pose a threat to liquidity.

What’s the survivorship of ETFs?

Some could say not great.

This year across the US market there were 253 ETF closures, up around 100% compared to the 126 closures in 2019.

https://www.etf.com/etf-watch-tables/etf-closures

On the flip side, 299 ETFs were launched in the US this year compared to 219 in 2019, around an increase of 36%.

Continuing looking at $SIMS

Two stocks which are having very positive December’s are

$BLNK:

Blink Charging Co

Which is currently up 111% this month, continuing its hot run this year up around 2400% capturing the the tailwinds of renewables and the EV market

Blink designs, manufactures, owns and operates EV Charging Stations. The company has a market cap of $1.5b on “Total revenue for the first nine months of 2020 grew 84% to $3.8 million”…will see how long this one lasts.

$SNCR:

Synchronoss

Is a cloud messaging platform for enterprise companies. The company has failed to get back in the green this year despite huge tailwinds in the saas and cloud space, and currently sits with a $200m market cap.


Overall:

A fairly neutral week for tech ETFs this week. With another short week ahead this week we will see if some of the larger ETFs are able to move back into the fold.

Hopefully you found this weeks edition useful, and as always none of this is investment advice and to reiterate.

Best,

Stuart