October 2020: Week 4

Edition #016 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.

Despite a positive first few days of trading last week, the tech market did have its second consecutive negative week, after three positive weeks in a row.

---

Weekly Changes:

Out of 114 Tech ETFs analyzed, the average Tech ETFs fell just under 1% through the week.

Given the negative week it’s not surprising to see that 3 of the top 5 Tech ETFs were inverse ETFs with $TECS (Direxion Daily Technology Bear 3X Shares) leading the way with a 8.44% gain.

Compare this to last week where $SOXS (Direxion Daily Semiconductor Bear 3x Shares) lead the way with a 3.2% gain. And $SOXL (Direxion Daily Semiconductor Bull 3x Shares) running up a huge 21.15% the week before that.

Despite the strength of the Levered Bears, we do see $SOCL taking a run at the top spot.

Largely thanks to $SNAPs (Snapchat) big week which saw it rally past its all time high to $43.13 thanks to a 52% gain through the week off of the back of positive earnings and a couple of the social networks quickly followed suit.

Even with these strong moves from within $SOCL, $LEND (Amplify Crowd Bureau Peer-to-Peer Lending & Crowdfunding ETF) top stocks had a stronger week.

With $150m small cap $WEI (Weidai) a leading auto-backed financing solution provider in China, gaining at one point through the week 500%+ to end the week at “just” 132% up.

---

Year-To-Date:

Of the 107 ETFs which have been around YTD, the average return sits at a steady 26.79% . The S&P 500 ended the week with 7.66% YTD returns.

The top 5 constituents saw some minor changes after a steady week the week prior.

$ARKW and $ARKK once again traded places for the top spot YTD. $ARKW now is the sole Tech ETF with returns north of 100% for the year.

$WCLD fell from 3rd to 5th, switching places with $OGIG which moved from 5th to 3rd

$ARKF moved from 6th to 4th, pushing $CWEB out of the top 5.

On the bottom end of the table, despite some positive moves this week $LEND still found itself in the bottom 5, albeit some distance away from the Levered Bears which were at the top of the weeklies.

---

2015-to-2019:

To end this weeks email, I’ll leave you with an interesting set of ETFs which I found.

I looked at 2011 ETFs from 2015 - 2019. Surprisingly only the following amount outperformed the $SPY in a given year:

2015 321/2011 16% 
2016 753/2011 37% 
2017 844/2011 42% 
2018 699/2011 35% 
2019 308/2011 15%

While more have outperformed the S&P500 over the 5 year period, only 10 outperformed in EACH of those 5 years.

And they are…

$PSJ - Invesco Dynamic Software ETF

Expense Ratio: 0.58%

31 Holdings

Largest Holding = $SNAP at 5.91%

$VGT - Vanguard Information Technology ETF

Expense Ratio: 0.10%

327 Holdings

Largest Holding = $AAPL at 21.78%

$IGM- iShares Expanded Tech Sector ETF

Expense Ratio: 0.46%

296 Holdings

Largest Holding = $MSFT at 8.44%

$UCC- ProShares Ultra Consumer Services

Expense Ratio: 0.95%

133 Holdings

Largest Holding = $AMZN at 28.59%

*This is a 2x daily leveraged ETF

$FTEC- Fidelity MSCI Information Technology Index ETF

Expense Ratio: 0.08%

312 Holdings

Largest Holding = $AAPL at 21.76%

$XLK- Technology Select Sector SPDR Fund

Expense Ratio: 0.13%

73 Holdings

Largest Holding = $AAPL at 23.59%

$IHI- iShares U.S. Medical Devices ETF

Expense Ratio: 0.43%

64 Holdings

Largest Holding = $ABT at 13.97%

$IYW- iShares U.S. Technology ETF

Expense Ratio: 0.42%

158 Holdings

Largest Holding = $AAPL at 20.26%

$RYT- Invesco S&P 500 Equal Weight Technology ETF

Expense Ratio: 0.40%

73 Holdings

Largest Holding = $LRCX at 1.54%

$XSW- SPDR S&P Software & Services ETF

Expense Ratio: 0.35%

170 Holdings

Largest Holding = $AVYA at 0.81%

---

Thanks again for reading, and see you all next week.

Stuart