In this week’s ETF & Markets video…

• Checking in on the ETF industry with 1H 2026 complete.
• Breakneck pace of flows and launches
• Small-caps: are they back or is it a mirage?

Definitions:

S&P 500 – A widely used stock market index that tracks 500 large-cap U.S. companies across multiple sectors. The S&P 500 defines its industries by classifying its 500+ constituent large-cap U.S. companies into 11 primary sectors based on the Global Industry Classification Standard (GICS).

SPDR S&P 500 ETF Trust (SPY) –designed to track the performance of the S&P 500 Index.

Equity ETF – An ETF that invests primarily in stocks, providing exposure to a broad market or specific sectors.

Fund Flow - Fund flow refers to the net movement of cash into and out of investment vehicles (like mutual funds or ETFs) or the movement of working capital within a company. It tracks investor sentiment and capital allocation, with net inflows indicating popularity and net outflows signaling divestment, independent of the asset's actual performance.

Beta - measures an asset's volatility and sensitivity compared to the broader market. It indicates how much a stock’s price tends to move in response to overall market changes, making it a key tool for assessing "systematic risk" (the risk inherent to the entire market).

Cumulative - a total that builds up or accumulates step-by-step as you move through data values.

Rolling Sum - The sum of a metric over a defined, fixed-length time window. As a new period's data enters the window, the oldest data point is dropped.

Correlation - Measures how two assets or variables move in relation to one another. Expressed numerically by a coefficient between -1.0 and +1.0, it is the foundation of portfolio diversification.

Trading Volume - Measures the total number of shares, contracts, or units of an asset traded during a specific period (e.g., a day, hour, or minute). It is a vital indicator used by traders to gauge market activity, liquidity, and the strength of a price movement.

An ETF % weight exposure is the specific percentage of an Exchange-Traded Fund's total assets invested in a particular holding, sector, or asset class. It dictates how much a specific stock's performance will impact the fund's overall value.

AUM stands for Assets Under Management. It represents the total market value of all the financial assets a firm, bank, or individual financial advisor manages on behalf of their clients.

IWM ETF - The iShares Russell 2000 ETF seeks to track the Russell 2000 Index. The fund offers broad exposure to U.S. small-cap stocks.

The Russell 2000 Index is a benchmark stock market index that tracks the performance of approximately 2,000 "small-cap" (small capitalization) publicly traded U.S. companies.

A small-cap ETF is an Exchange-Traded Fund that pools money to invest in the stocks of smaller companies. These companies typically have a market capitalization between $300 million and $2.4 billion.

Diversification is the practice of spreading money, resources, or operations across a variety of different areas to manage risk and increase stability.

SEC Rule 6c-11 is an SEC regulation under the Investment Company Act of 1940 that allows standard Exchange-Traded Funds (ETFs) to operate and come to market without the time-consuming process of securing individual exemptive orders.

SEC Rule 18f-4 is a comprehensive regulatory framework governing how registered investment companies and business development companies use derivatives. It provides a standardized exemption from Section 18 limits on "senior securities" to allow funds to engage in derivatives transactions, provided they implement strict risk management and leverage limits.

An Option Income ETF is an actively managed fund that holds a portfolio of stocks, bonds, or commodities, and generates cash flow by selling options contracts (such as covered calls or puts) against these assets. The premiums collected are distributed to shareholders, often as large, monthly payouts.

A buffered ETF (also called a defined-outcome ETF) is an investment fund that tracks a market index but limits your downside risk during a specific period in exchange for capping your maximum potential gains.

A leveraged ETF is an advanced financial instrument designed to multiply the daily performance of an underlying benchmark by 2x or 3x.

A crypto ETF is an investment fund traded on traditional stock exchanges that tracks the value of one or more cryptocurrencies. It allows you to gain exposure to digital asset price movements using a standard brokerage account, without needing to buy, store, or manage the actual cryptocurrency yourself.

A commodity ETF is an investment fund that tracks the price of raw materials or physical goods—such as energy, precious metals, or agricultural products. They allow investors to easily trade commodities on the stock market without having to buy or store the physical items.

A fixed income ETF is a pooled investment fund that holds a diversified basket of bonds or other debt securities and trades on major stock exchanges throughout the day.

Bloom Energy is a publicly traded American company that designs and manufactures solid oxide fuel cell systems to generate continuous, on-site electricity. Its core product, the Bloom Energy Server, produces power through an electrochemical process rather than combustion, offering clean, resilient, and reliable energy for major commercial and industrial sectors.

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.