SWM ETF portfolio fact sheets, May 2021: ETF gains, outperforming in crypto

May 2021 saw moderate gains in equity markets (+1.6%), and all SWM ETF portfolios showed positive returns. Our newly-launched crypto portfolio saw sharp losses due to the mid-May crypto correction, however we ended the month outperforming the benchmark by over 4%. In our traditional portfolios, our balanced and growth portfolios lagged the benchmark slightly due to ongoing strength in commodities (in which we cannot invest due to our sustainable / ESG approach). We believe the oil price is approaching the top of its range following a stellar run year-to-date. There was also a slight drag to our equity holdings from our US small cap overweight (small caps were flat in May).

We believe that the much-touted “value trade” of H1 2021 is approaching is end, and that performance will return to growth-oriented, technology and small cap stocks in the next months (in-line with our view that a resurgence in inflation will not occur). Hence we retain our overweight positions in these sectors. In crypto, our top pick Cardano was up 22.3% in a month where the sector declined by 31%. We continue to see a strong up-trend for both Cardano and Ethereum in the coming weeks.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for May 2021.