SWM ETF portfolio fact sheets, November 2020: record year-to-date outperformance

With the huge equity rally in November 2020, SWM’s ETF portfolios all showed very strong absolute gains. Our Equity ETF portfolio is now outperforming its benchmark by 10.5% year-to-date (up 20.53% vs. benchmark up 10%). This is record ytd outperformance and is echoed by our growth, balanced and conservative ETF portfolios. Our overweight positions in a) US equities b) ESG (sustainable) equities and c) small- and mid-cap equities paid handsome dividends. In the US market, our technical indicators are showing the typical signs of the start of a long-term, significant equity rally. Importantly, small caps clearly took over equity market leadership during the month of November 2020. This bodes well for the overall equity market trend in 2021, with small caps typically leading market direction.

At the end of the month, we added exposure in selected small cap equity ETFs. Our small (2%-3%) holding in cryptocurrency also had a very strong month, with the Greyscale Bitcoin Trust up over 50% and Bitcoin hitting a new all-time high. We anticipate a short-term pullback in equities during early December, which if it materialises would present an excellent buying opportunity for 2021. We are watching for an opportunity to move back to a full Overweight position in equities (we are currently Neutral).

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for November 2020.