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Todd Sohn

ETF Strategist

Jim Martin

National Accounts & Advisory Sales

(704) 995-3655

jmartin@strategasasset.com

Are ETF Flows Indicating Rally Skepticism?

05/07/2025

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This week, Strategas ETF Expert Todd Sohn examines the hidden currents of the equity rally, reveals why category flows indicate market uncertainty, and the crucial part international equities play in our intertwined economy.

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.  
An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock.  
Fund flows represent the cash that goes into or out of companies, financial assets, sectors, or other market categories.   
Equity ETFs invest in a basket of company stocks (also known as equities or shares). They are the most common type of ETFs.
A Treasury bill (T-bill) is a short-term U.S. government debt obligation backed by the U.S. Department of the Treasury. Terms range from four to 52 weeks. T-bills are issued at a discount from the par value, also known as the face value.
The SPDR Gold Shares ETF (GLD) is an exchange-traded fund that tracks the spot price of gold.
A cyclical stock moves in sync with trends in the economy. The price soars when the economy is flourishing, but it can just as easily decline in times of recession
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 MSCI EAFE Index is a global stock market index that tracks the performance of equity markets in developed countries outside of the United States and Canada.
The iShares MSCI EAFE ETF (ticker symbol: EFA) is an Exchange Traded Fund (ETF) that aims to track the performance of the MSCI EAFE Index.

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser. Information regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this communication, and are subject to change. 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. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. 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 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.

The ETFs described herein are referenced solely for illustrative purposes and should not be construed as an investment recommendation. An investment in exchange traded funds involves risk, including the possible loss of principal. For important disclosures and risks relating to each ETF referenced herein, see each respective funds’ prospectus or contact your financial professional.