In this week’s ETFs & Markets video, Chief ETF Strategist Todd Sohn walks through three key questions from the ETF universe:

• Net equity ETF outflows: aberration or slowdown coming?
• Any hope for Low Vol strategies?
• How much room left for Real Assets?

Defintions:

S&P 500 – A widely used stock market index that tracks 500 large-cap U.S. companies across multiple sectors.

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.

Volatility - Volatility refers to the speed and severity with which an investment's price fluctuates.

Correlation - a mutual relationship or connection between two or more things.

Energy Sector - The energy sector is a critical, cyclical component of the global economy comprising companies involved in the exploration, production, refining, and distribution of fuel and power. It includes traditional fossil fuels (oil, gas, coal) and renewables (wind, solar, nuclear).

Invesco S&P 500® Equal Weight Energy ETF (RSPG) - A passively managed exchange-traded fund that tracks the S&P 500® Equal Weight Energy Plus Index, providing equal-weighted exposure to U.S. energy companies in the S&P 500. It invests at least 90% of its assets in stocks involved in oil/gas exploration, refining, and equipment, rebalancing quarterly.

Invesco S&P 500 Equal Weight ETF (RSP) - a passively managed fund that tracks the S&P 500 Equal Weight Index, giving every company in the S&P 500 an identical weight (approx. 0.2%) regardless of size. It rebalances quarterly, reducing concentration risk from large tech stocks and providing higher exposure to smaller-cap companies. 

Real assets are tangible, physical investments—such as real estate, infrastructure, commodities, and natural resources—that hold intrinsic value due to their substance and properties. Unlike financial assets (stocks/bonds), they provide direct utility, often acting as inflation hedges and offering portfolio diversification.

Oil - a viscous liquid derived from petroleum, especially for use as a fuel or lubricant.

Natural Resources - Invests in companies involved in the exploration, extraction, production, and processing of raw materials like energy (oil/gas), metals, mining, and agriculture. These ETFs provide diversified exposure to commodities, acting as a hedge against inflation and capital appreciation, often tracking indices or actively managed.

Inflation protection refers to mechanisms in financial products, insurance, or investments designed to automatically increase in value or coverage amount to keep pace with rising costs (inflation), thereby preserving purchasing power over time. It ensures that benefits or asset values do not shrink in real terms as prices rise. 

The Consumer Price Index (CPI) is a key economic indicator that measures the average change over time in prices paid by consumers for a representative "basket" of goods and services. Compiled monthly by the Bureau of Labor Statistics (BLS), it serves as a primary gauge of inflation and cost-of-living changes.

A TIPS ETF (Treasury Inflation-Protected Securities Exchange-Traded Fund) is an investment fund that holds a diversified portfolio of U.S. government bonds designed to protect against inflation. These bonds adjust their principal value based on the Consumer Price Index (CPI), ensuring purchasing power increases during rising inflation. 

ETF volume represents the total number of shares of an exchange-traded fund that are bought and sold on an exchange during a specific period, typically a single trading day. It measures market activity and investor interest, with higher volumes generally indicating greater liquidity and tighter bid-ask spreads.

Exchange volume is the total quantity of assets (stocks, crypto, or forex contracts) bought and sold on a specific exchange within a defined timeframe, typically measured daily. It acts as a key indicator of liquidity, market interest, and price trend strength—high volume suggests high liquidity and frequent trading. 

Trading Range - The difference between the high and low prices traded during a period of time.

A Quality ETF is a type of factor-based exchange-traded fund that invests in companies exhibiting strong financial fundamentals, such as high profitability, low debt levels, stable earnings, and efficient capital usage. These funds aim to provide long-term capital appreciation and downside protection by targeting financially robust, sustainable businesses, often outperforming the broader market during economic downturns.

Low volatility (low vol) ETFs are investment funds designed to track indices of stocks with historically lower price fluctuations and reduced sensitivity to market swings, typically aiming to provide a smoother ride with smaller losses during market declines. They are considered defensive, "smart beta" tools used to mitigate risk while seeking market-like long-term returns.

A momentum ETF tracks a specific index of stocks showing the strongest recent price performance, aiming to capitalize on the continuation of upward trends. They are used to generate higher returns by investing in "winners" (stocks with high price appreciation over 6–12 months), making them popular during bull markets. 

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.