November 2020: Week 2
Edition #019 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
This week there will be a couple of small changes to the report. Primarily, I’m filtering out any levered or inverse Tech ETF, to come up with a more “pure” Tech ETF Ranking. Hopefully, this makes the report more valuable for you.
In this new group, there are 81 ETFs.
Weekly Changes (Overall):
Out of 81 Tech ETFs analyzed, the average Tech ETFs had a slightly positive week with a 0.41% rise.
The top 5 ETFs over the last week all had $250m AUM and rank in the bottom quartile based on YTD returns.
Both $ROKT and $FITE saw a positive week in part to $MAXR (Maxar Technologies is a space technology company headquartered in Westminster, Colorado, United States, specializing in manufacturing communication, Earth observation, radar, and on-orbit servicing satellites, satellite products, and related services.) which gained 15% through the week, to end at a $1.5b market cap.
Here’s a link to Maxar’s 3rd Quarter Earnings which they released on November 5th.
Weekly Changes ($1b+ AUM):
Out of 25 Tech ETFs which have over $1b in assets under management, the average Tech ETFs had a more positive week with a 0.71% rise.
$KWEB and $ARKK both had strong weeks, gaining just north of 2% each. This is already on top of their already impressive YTD returns of 38% and 79% respectively.
This was in spite of the fact that their respective largest holdings each fell through the week ($TSLA from $ARKK, and $BABA from $KWEB)
Weekly Changes (100+ Holdings):
For the 21 ETFs in this group with greater than 100 Holdings, the average return for the week was another flat 0.28%.
3rd ranked $IEUS (iShares MSCI Europe Small-Cap ETF) topped this cohort (but again, is the 2nd worst performing ETF in this group based on YTD returns).
Meanwhile, $IDRV (iShares Self-Driving EV and Tech ETF) is currently ranked 4th/81 for the last 3month returns.
For those interested in specific coverage of the EV landscape, I recommend checking out Joshua Clark’s weekly newsletter at EV Shakeout.
Year to Date Changes (Overall):
YTD, this group is currently up 23.84%, above the $SPY 12.86%.
While there is no new news on the top 3 spots being held by ARK Funds, the fund does have some new press, which notes an upcoming ownership change.
“In an Oct. 29 SEC filing, ARK reported that as part of the 2016 agreement, Resolute has "an option to purchase a controlling voting and equity interest in (ARK) that is exercisable in 2021," and said Resolute notified the firm on the same date that it "intends to exercise that option."
…
According to ARK's most recent SEC ADV filing, Catherine D. Wood, the firm's CEO and CIO, holds an ownership stake in the firm she founded in 2014 of 50% to 75%.
In a statement, Ms. Wood expressed the firm's negative view of Resolute's action: "On behalf of the employee-owners of ARK, we are disappointed that Resolute Investment Managers and its private equity owner, Kelso & Co., have chosen to issue this unwelcome notice that they intend to seize control of our business.”
You can find the full article here, and I’ll keep posted as things evolve over the next couple of months. Given ARK’s stellar returns over the last 5 years, I was very intrigued on how much longer this run could continue given it is traditionally hard to maintain performance beyond a 5 year period. Unfortunately, this change in ownership may threaten longer term performance (based on Ms. Wood’s sentiment on the potential ownership change).
Hopefully you enjoyed this weeks new format,
See you next week,
Stuart