The Emles @Home ETF (LIV) seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Emles Home Lifestyle Index, an index comprised of companies that substantially focus on, and could benefit from, the trend of increased and diverse home activities.
Performance summary of Q1 2022
For the quarter ended March 31, 2022, Fund positions returned -15.21% at NAV versus benchmark losses of -18.15% for the NYSE FactSet Global Virtual Work and Life Index over the same period.
- Contributors: Palo Alto Networks, Crowdstrike Holdings
- Detractors: Peloton, GXO, Roblox, Netflix
- Outlook: We expect non-secular drivers to cycle performance in and out of names as the search for normalcy ensues. We maintain a view that regardless of return-to-office (RTO) trends, exposures within the Fund represent a diversification of impacts to how we live in and perceive our homes.
Quarter in review
- Last quarter's winners led losses in 1Q2022 as Roblox and Netflix saw significant loss of investment in an increasingly challenging environment for best of breed technology names.
- A result of heightened cybersecurity awareness as a result of the Ukraine-Russia conflict, fund positions in Palo Alto Networks and Crowdstrike led contributions to fund return with 1%+ of contribution to fund return over 1Q2022\
- A dynamic global reopening encourages ‘@Home’ themes to selectively curate exposures that will not only impact our home lives, but also perform as investments.
- We maintain a view that without a complete return to pre-pandemic normalcy, investors would be remiss to ignore changes to how we live and work at home.
- We remain cautious of rate-sensitivity to equity valuations across software and related technology names.