In this week’s ETF & markets video, ETF Expert Todd Sohn discusses considerations for diversifying a portfolio amidst high index concentration, what a rate cut might mean for money market fund flows and the continued rise of active Fixed Income ETFs.

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.

Definitions:

S&P 500 Index (SPX) – The S&P 500 is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the U.S.

iShares MSCI USA Quality Factor ETF (QUAL) – An exchange traded fund that seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks with quality characteristics as identified through certain fundamental metrics

The iShares Core S&P 500 ETF (IVV) is a passively managed exchange-traded fund designed to track the performance of the S&P 500 Index

Vanguard Federal Money Market Fund (VMFXX) – Money Market fund that seeks to provide current income while maintaining liquidity and a stable share price of $1. The fund invests at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash (collectively, government securities)

Money Market Fund - A type of mutual fund that invests in money market instruments. Not FDIC-insured but aims to maintain a stable net asset value

iShares MSCI Japan ETF (EWJ) - An exchange traded fund  that seeks to track the investment results of an index composed of Japanese equities

Mutual fund - Mutual fund is an investment company that pools money from many investors to purchase a diversified portfolio of securities, such as stocks, bonds, or other assets

The Bloomberg Aggregate Bond Index (AGG) is a market capitalization-weighted index that includes a wide range of investment-grade fixed-income securities traded in the U.S. It serves as a benchmark for mutual funds, ETFs, and institutional investors to measure the performance of their bond portfolios

Actively-managed ETF - An actively managed ETF is an exchange-traded fund with a manager or team making decisions on the underlying investments in the fund

Passively-managed ETF - A type of investment fund that aims to replicate the performance of a specific market index rather than trying to outperform it