SWM ETF portfolio fact sheets, June 2021: further outperformance in SWM equity ETF portfolio

June 2021 saw positive returns in all SWM portfolios bar crypto and fixed-income. We outperformed by almost 1% in the SWM equity ETF portfolio, bringing year-to-date outperformance up to 3.84%. The month was characterised by gains in equities, where our overweight positions in US small-caps paid off (+1.2% vs global equities +0.68%), and strength in the growth and technology sectors, as the much-touted value trade began to unwind (as we had predicted, see last month’s SWM portfolio fact sheet commentary). Some of our long-running holdings such as the solar ETF (TAN), cloud computing (SKYY) and biotech (IBB) were up strongly (between 8% and 13%). Fixed-income saw slight weakness, as further Fed tapering and inflation fears arose.

As we have commented previously, we see a moderate return of inflation which has already been priced into markets, allowing the equity market rally to continue. Crypto saw another very weak month, with the SWM crypto portfolio down almost 20%. There were tentative signs of a floor forming towards the end of June, following recent months’ huge price declines. Our technical signals continue to indicate a healthy bull market for equities, with broadening participation and small-cap strength, both key indicators underpinning further gains in the coming months.

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