ALPS’ Disruptive Technologies ETF Outpaced Broad Tech Sector in November

SS&C ALPS Advisors’ disruptive technologies ETF generated attractive returns for investors last month.

The ALPS Disruptive Technologies ETF (DTEC) climbed 15.80% in November, outpacing the broad-based tech sector. Meanwhile, the Technology Select Sector SPDR ETF (XLK) gained 10.75%.

ALPS disruptive technologies ETF

DTEC provides exposure to 10 disruptive technology themes, including cybersecurity; mobile payments; data and analytics; fintech; robotics and artificial intelligence; internet of things; cloud computing; 3D printing; clean energy and smart grid; and healthcare innovation.

In November, all 10 themes rallied 1,100 basis points (bps) or more, according to SS&C ALPS Advisors. Strong performance can be attributed to earnings beats and talks of a possible soft landing in 2024 that may precipitate a rate cut from the Fed next year as inflation eases, ALPS wrote.

Top-Performing Holdings in ALPS’ Disruptive Technologies ETF

In November, mobile payments and cyber security were the top-performing themes, leading the fund’s returns during the month. All 10 themes represented in DTEC are all given equal weights.

Adyen N.V. (ADYEN NA, 1.46% weight as of November 30), a mobile payments name, jumped nearly 75% last month following the company’s quarterly update. The company’s third-quarter transaction volumes were much better than expected.

Another top performer in the Mobile Payments theme, Block Inc. (SQ US, 1.13% weight as of November 30), gained 57.59% in November. The company reported third-quarter results that beat forecasts with a boost to full-year guidance, according to ALPS.

Trend Micro Inc. (4704 JP, 1.20% weight as of November 30), a name in DTEC’s cyber security segment, climbed over 36% last month. The company beat quarterly operating profit estimates on a weak Japanese Yen and raised its annual dividend substantially, according to ALPS.

DTEC’s 3D printing segment also boosted the monthly performance of the fund. Proto Labs Inc. (PRLB US, 1.29% weight as of November 30) gained 53.32% last month as the company’s third-quarter earnings saw increased demand for its comprehensive digital manufacturing capabilities, according to ALPS.

Finally, AI and robotics name Autostore Holdings LTD (AUTO NO, 1.00% weight as of November 30) surged over 50% last month. The company reported strong order intake numbers in its third quarter operating results with declining materials costs for its robotic equipment.

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