ETFs & Markets with Todd Sohn: Market Trends, Equity Flows and Small-Caps

07/18/2024

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Strategas Asset Management ETF Strategist Todd Sohn shares insights on market trends, equity flows, and the surprising story the small-cap charts are telling.

Definitions:

The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

The Invesco S&P 500® Equal Weight Health Care ETF (“RSPH”) seeks to track the investment results (before fees and expenses) of the S&P 500® Equal Weight Health Care Index (the "underlying index").

“Weighted” is a description of adjustments to a figure to reflect different proportions or "weights" of components that make up that figure.

An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock.

The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

Equity ETFs invest in a basket of company stocks (also known as equities or shares). They are the most common type of ETFs.

Assets under management (AUM) is the market value of the investments managed by a person or entity on behalf of clients. AUM is used in conjunction with management performance and management experience when evaluating a company.

Fund flows represent the cash that goes into or out of companies, financial assets, sectors, or other market categories.

The S&P 500® Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500. The index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight - or 0.2% of the index total at each quarterly rebalance.

The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.

A small-cap stock is a stock from a public company whose total market value, or market capitalization, is about $250 million to $2 billion.

The iShares Core S&P Total U.S. Stock Market ETF (“ITOT”) seeks to track the investment results of a broad-based index composed of U.S. equities.

The Invesco S&P 500 Equal Weight Fincl ETF (“RSPF”) seeks to track the investment results (before fees and expenses) of the S&P 500® Equal Weight Financials Index (the "underlying index").

Active funds seek to outperform market returns with investments hand-picked by professional money managers.

Passive funds track an index with the goal of replicating that benchmark's return. Passive funds' management teams don’t choose specific investments for the portfolio in an attempt to outperform an index, as managers of active funds do.

This communication was prepared by Strategas Asset Management, LLC ("we" or "us" or “our”). This communication represents our views as of 07/17/2024, which are subject to change, and are presented for illustrative purposes only. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC is an SEC Registered Investment Adviser affiliated with Strategas Securities, LLC, a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser. Both Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.