ETF Action: Research
Insights
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Insights Archives
ETF Action Thematic All-Stars Composite Index - March Rebalance Slick
3.9.2022
-The ETF All-Stars Thematic Composite Index added 5 companies and dropped 8 companies in the March rebalance bringing the total number of securities to 147
-Notable adds include Walt Disney Company (DIS) and Norton LifeLock (NLOK)
-NetEase, Inc. (9999-HK) and Etsy, Inc. (ETSY) were both removed from the index
-Tesla (TSLA) was upweighted 68 bps to the maximum 5% level while Block (SQ) was upweighted 83 bps to 2.56%
-The Top 10 holdings now represent 30.20% of the index
ETF Action Thematic All-Stars Composite Index - November Rebalance Slick
12.6.2021
-The ETF All-Stars Thematic Composite Index added 6 companies and dropped 13 companies in the December rebalance bringing the total number of securities to 141
-Notable adds include AutoDesk Inc (ADSK) and Renewable Teradyne Inc (TER)
-NVIDIA (NVDA) and Tesla (TSLA) were both reduced back down to the maximum 5% weight while Enphase Energy (ENPH) was raised 84bps to just over 4% weight
-The Top 10 holdings represent 29.67% of the index
ETF All-Stars Thematic Playbook
8.9.2021
A brief overview of performance, flows, and highlights of the ETF All-Stars Thematic Indexes and the thematic landscape:
ETF All-Stars Thematic Playbook
8.3.2021
A brief overview of performance, flows, and highlights of the ETF All-Stars Thematic Indexes and the thematic landscape:
ETF All-Stars: Online Retail
5.5.2021
Top 10 Online Retail Stocks
By and large online retailers have outperformed traditional brick and mortar retail over the last several years as technology adoption has increased, particularly amid the pandemic. Then came February 2021. Yes, the world was continuing to open up in February but we began to see the upward trend in yields which effectively compressed stretched valuation multiples on a number of tech focused strategies. Today we look at what those strategies look like and what companies they hold.
While there are only a few ETFs that cover the space, it is growing quickly in assets and may stand to benefit from the strong secular trend still. Hence, we explore the ETFs and the companies that make up ETF All-Stars Online Retail Select Top 10 List.
Let's begin by looking at the current Online Retail ETF landscape...keep in mind, we only are looking at ETFs that are globally focused and not country or region specific ETFs (ie: China consumer ETFs).
Lower Multiples, More Value: Rebalancing U.S. Factor AIM Portfolio
4.19.2021
Since the last rebalance in November, the U.S. Factor AIM Portfolio has returned 20.31%, outpacing the S&P 500 by nearly 300 basis points. The rebalance across all of the AIM portfolios in November was specific to positioning for a cyclical recovery which proved to be beneficial. While we believe the cyclical recovery is still underway, this week's rebalance is focused specifically on three things:
- Lowering the portfolio valuation multiple
- Increasing value characteristics to stay aligned with ongoing cyclical recovery
- Increased financials exposure and size tilt
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ETF All-Stars: Advanced Materials
4.14.2021
Top 10 Advanced Materials Stocks: A Great Place To Start Upstream
Over the last several weeks we have discussed the potential multi-trillion dollar infrastructure bill in the works in Washington and the impact that may have for investments in 5G/Connectivity and NextGen Transportation. The Biden administration has already come out and said it plans to jump start the electrification of America's roads by offering nationwide charging station infrastructure, tax incentives for electric vehicle buyers, and money to boost domestic supply of materials. That's exactly why this week we thought we would look further upstream from the NextGen Transportation segment into Advanced Materials.
While there are only a few ETFs that cover the space, it is growing quickly in assets and may stand to benefit from strong battery demand over the next decade and onward. Hence, we explore the companies that make up ETF All-Stars® Advanced Materials Select Top 10 List.
Monday Morning QB - April 12 Preview
This Week In ETFs
4.9.2021
This Week In ETFs
Week of April 5-9, 2021
- Latin America ETFs Continue to Rebound
- Energy Falters, XLE Close to Correction Territory
- Flows Remain Positive
- Chart of the Week: Strong Market Breadth
ETF All-Stars: The Security Selection Paradox
4.7.2021
What Kind Of Company Is Tesla?
How do you classify Tesla within a classification system? According to GICS classification, Tesla falls within the automobile industry in the consumer discretionary sector. But what else is it? Is it a clean energy company because it is the posterchild for creating a network of vehicles that reduces carbon emissions? Or is it a robotics & AI company because most of its production lines are automated…by robots?
Or is it an advanced materials company because it is exploring and developing new battery technologies? I could go on and on but the point here is that when it comes to thematic investing, classifying companies into specific buckets can be difficult.
This leads to the problem in thematic investing that we here at ETF Action call the Security Selection Paradox. Growth in thematic investing has been nothing short of explosive over the past several years and the Security Selection Paradox is the expectation that ETFs with similarly stated investment objectives that aim to capture the same narrow thematic segment will have a high overlap in common holdings. However, oftentimes this does not hold true across the thematic ETF landscape. This leaves investors with choices that don’t necessarily align with their true investment objective. Let’s explore…