This week we're looking at the year-to-date performance of the biggest market indices and style factors. We'll also give an update on the performance of the STRATxAI ETF strategies. Finally, we'll explore Bitcoins recent dominance over the crypto sector.
You can read last week's review here.
In 2023, the technology sector has been the primary contributor to the overall gains. Year-to-date, the Nasdaq-100 (QQQ) has experienced a substantial increase of nearly 20%, surpassing the performance of other indices. The S&P 500 (SPY) maintains a positive trend with a growth of 7.4%, while the Dow Jones Industrial Average (DIA) and Russell-2000 have shown little progress, remaining flat for the year thus far.
60% (4.2%) of the return of the S&P 500 this year is attributable to just 7 stocks. Apple, Microsoft, Amazon, Nvidia, Tesla, Google, and Meta account for only 24% of the index.
If you'd like to invest in Big-Tech in a systematic way, then check out this example strategy we've built.
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Turning now to the primary style factors. The quality factor is leading the way in 2023, with a 5.6% gain. The remaining factors, value, dividend yield, low vol, and momentum remain flat for the year.
We provide a catalog of diversified ETF strategies. Analysing the performance of each of these strategies over the past year, we can compare their performance versus that of the S&P 500, which has returned -6.6% over the past year. Our momentum strategy, 'Go with the Mo' comes out on top with a 4.3% gain over the past 12 months. This is followed by the 'Market Rotation' and the 'All-Weather' strategies, which have returned -3%. The 'Stock-Bond Switch' strategy is down -4.5% while the ESG focused 'Green Planet' strategy has returned -15%.
See our ETF strategies for an in-depth analysis of their performance.
Bitcoin dominance typically increases during bear markets in the cryptocurrency market. This is because investors tend to flock to the safety of Bitcoin, relative to other cryptocurrencies, during times of volatility. In addition, Bitcoin has a longer track record and greater liquidity than many other cryptocurrencies, making it a more stable investment choice for many investors during bear markets. Bitcoin has reclaimed the $30,000 mark for the first time since May 2022.
We've plotted the performance of the major cryptocurrencies relative to Bitcoin over the past 100 days. As we can see, Bitcoin has outperformed all cryptos with the exception of Solana, which has seen a healthy rebound after the FTX collapse.
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