January 2021: Week 3

Edition #028 - KWEB leading last weeks gains in Tech ETFs

This week saw another strong week for Tech ETFs, with the top 5 gaining an average of 5.19% through the week.

$KWEB (KraneShares CSI China Internet ETF) led the week with strength after a 48-second video appearance from Alibaba founder and CEO Jack Ma, whose whereabouts had been unknown for the last 3 months seemed to reassure investors that China tech may be ok moving forward.


$GAMR and $GME

Meanwhile, in 2nd place for the week was $GAMR which rose 5.47%.

This was largely off of the back of $GME (GameStop, an American video game, consumer electronics, and gaming merchandise retailer; and operates 5,509 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe )

$GME was up 63% through the week thanks to some hype being generated through a Reddit community gaining some notoriety for aggressive trading. This was partially in response to a short report issued by short seller Citron Research, where traders are trying to force short sellers to close their positions as the stock rises by buying back the stock.

$GME has grown into $GAMR largest holding, with a weight of just over 3%.

The stock is down 6% after-hours and will be in for an interesting couple of weeks for sure.


Holding Size - The Exception to the rule

Looking at the top Tech ETFs Year to Date sees $KOMP currently leading the field.

$KOMP (Kensho New Economies Composite) so far has managed to have 19% YTD returns.

This is with 399 holdings! No other ETF in the top 9 have >100 holdings.

Over the last couple of months, ETFs in this cohort with <100 holdings have traditionally out-performed their larger peers.

Out of these 59 ETFs, the 43 that have <= 100 holdings are currently up 9.17% YTD, compared to the 16 that have > 100 are up 6.7%.

Impressively, all 59 are in positive territory at this point of the year.


Continued strength at the top

The top ETFs from 2020 continue to slightly outperform compared to the rest of this group.

The top 11 from last year are currently up on average 11% compared to the rest at 8%

$ARKQ is currently in 3rd place overall, with the top two being $KOMP and $KWEB


Stay tuned, and see you next week.

Stuart