November 2020: Week 1
Edition #018 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
After 3 negative weeks in a row, the Tech ETF market saw a positive move amidst US election. Dow Futures are up over 300 pts as of writing this, so we may be in store for another positive week.
Weekly Changes:
Out of 114 Tech ETFs analyzed, the average Tech ETFs rose a relatively large 8% through the week; one of the best performing weeks since I started writing this in June, slightly outpacing the S&P500 which had a very strong weekly performance at 6.04%.
This was largely thanks to some of the larger gains of the levered ETFs. 4/5 of the top 5 ETFs were levered, all returning at least 14% through the week with $SOXL (Direxion Daily Semiconductor Bull 3x Shares) leading the charge with a 37% gain.
Only 9/191 US listed stocks from this group of 5 ETFs dropped through the week.
The top end of individual stocks all equally saw very strong double digit gains with $TTD (The Trade Desk) and $Z (Zillow) leading the way.
“The Trade Desk (TTD) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 159.18%” according to Yahoo Finance.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits up 6% from two weeks ago at 32% . The S&P 500 ended the week with 8.22% YTD returns.
The top 5 constituents saw some minor changes after a steady week the week prior; impressively with 3 ETFs moving beyond 100% YTD returns.
$ARKW retained its spot at the top for the 3rd week in a row.
$CWEB climbed back from 6th to 2nd, thanks in part to its 2x leverage status.
$ARKK dropped from 2nd to 3rd.
$OGIG fell from 3rd to 4th
$ARKF fell from 4th to 5th
And $WCLD is down in 6th.
Back in July for the first edition of this newsletter here were the top 5 YTD tech ETFs.
Since then, the group has returned 18-35% compared to the S&P 500 10.24% returns. If you thought you had missed some of the larger gains from the bottom in March, investing again in July may not have been a bad decision.
With some new stability in the US after the election seems to be drawing to a close, it will be an interesting last 7 weeks to the 2020 stock market. Despite the big pull back in March Tech stocks and ETFs have fared very well this year. Will the run continue into and through 2021?
Stay tuned…
Stuart