Overview of performance of ETF portfolios in Purple Trading - Q2 2020

As we pointed out before, none of our ETF portfolios is actively managed and it basically copies the development on the main stock indices only passively. Therefore, its performance mirrors the development of global financial markets quite precisely.

We have already described the main events on financial markets here, so let’s take a look at how it affected the performance of portfolios.

Mixed portfolios

(Performance charts on June 30, 2020, fees included)

Each of the three mixed ETF portfolios contain the same underlying ETF instruments, but the differences between them are only in the allocation of invested client funds between the bond and stock based ETFs. Therefore, charts of each of the three portfolios look very much alike and they vary only in nominal values with deviations between profits and losses.

When we described the situation three months ago, it was a summary of quite a hectic and turbulent quarter, which has had an amazing start and pretty steep downfall due to the coronavirus pandemic. The trend in the second quarter of 2020 was more straightforward and it was pretty much all positive. 

Positive news about the declining numbers of newly infected patients throughout the world in the end of May, and then mainly the billions of dollars being pumped into the main world economies resulted in very optimistic mood in the markets as well and pretty much all the indices commenced their journey back in the growing direction. For example the NASDAQ100 index, which follows technological US companies, has even reached its all time high in the end of June, and has increased even further in July.

Not all the indices recovered so fast, and the European or Asian markets are recovering more slowly than the US ones, which is also one of the reasons why we have not seen the full recovery on none of the ETF Portfolios yet.

Currently, the numbers of infected patients are increasing again, especially in the US, and we will be curious whether the optimism in the markets persists. 

And so how did the actual numbers look like?

Performance of mixed ETF portfolios in % on June 30, 2020, incl. fees*:
 

	Bonds / stocks	Q2 2020	YTD	INCEPTION (1. 2. 2019)
Conservative	70 / 30	+ 6.80%	- 3.30%	+ 4.91%
Balanced	50 / 50	+ 8.19%	- 4.41%	+ 7.43%
Dynamic	30 / 70	+ 9.53%	- 5.46%	+ 9.91%

* Information stated above is related to the past; however, past development represents no guarantee or reliable indicator for future profits. Please, take into account that your net profit may differ depending on the time you invested your funds, due to the fees related to your portfolio (Management fee and/or Front fee), but also on the basis of potential differences between the performance of EUR, CZK or USD versions of this portfolio.
 

Purely stock portfolios 

(Performance charts on June 30, 2020, fees included)

Purely stock ETF portfolios consist of ETF instruments, copying only stock indices, so this is a riskier, but also more interesting category from the potential profits point of view.

So, it’s not a surprise that in case of Global stocks portfolio, its development was similar as in case of portfolios above. We experienced a deeper drop here with regards to the events Q1, but the great result of +15.61% in Q2 helped to get this portfolio back to positive numbers too. This has surely pleased many investors who managed to top up their portfolios with additional deposits in March and April, as we informed last time.

Last portfolio in our offer is the so-called “sector-based” portfolio, focused on the health-care industry and aging population. Logically, the healthcare industry is currently booming and the huge amount of money inflows to the pharmaceutical companies, as the race to create the vaccine against coronavirus is still on. This portfolio therefore experienced a similar development as the other ones and it actually recorded the best quarterly results so far. If you think that this industry should still be the one to benefit from the current situation the most, it could be an interesting investment choice.

Performance of purely stock ETF portfolios in % on June 30, 2020, incl. fees*:

	bonds / stocks	Q2 2020	YTD	inception (1. 2. 2019)
Global stocks	0 / 100	+ 15.61%	- 8.50%	+ 8.50%
Sector based stocks	0 / 100	+ 20.83%	+ 0.33%	+ 7.91%

* Information stated above is related to the past; however, past development represents no guarantee or reliable indicator for future profits. Please, take into account that your net profit may differ depending on the time you invested your funds, due to the fees related to your use of portfolio (Management fee and/or Front fee), but also on the basis of potential differences between the performance of EUR, CZK or USD versions of this portfolio.

As always, you can find the actual performance of all ETF portfolios in your PurpleZone.

If you see rather an opportunity in the actual turbulent situation and believe, as we do, that the global economies as well as the shares of the most valued companies will be recovering even further from the recent drops, and you don’t want to analyze and handpick from the hundreds of single stocks, nor to send your investments into the expensive mutual funds or non-performing bank products, don’t hesitate to open an ETF investment account directly in the PurpleZone and try to invest in a diversified and simple way (either regularly or at one time), and from EUR 20 already.