In this week's ETF & Markets video we look at...

• Over 900 new ETFs launched year to date
• Flows returning to Healthcare
• Energy today vs. earlier in the year
• Where did the Consumer go?

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.

% weight exposure is the specific percentage of an ETF or index in a particular holding, sector, or asset class. It dictates how much a specific stock's performance will impact the fund or index 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.

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

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

Option income ETFs are exchange-traded funds that generate income by selling options on underlying assets, providing investors with regular premiums while potentially limiting upside gains.

Buffer ETFs, also known as defined outcome ETFs, are designed to provide investors with a pre-determined range of outcomes over a set period, typically one year, by using options contracts on an underlying index such as the S&P 500.

A sector ETF is an investment fund that tracks a specific part of the economy, such as technology, energy, health care, consumer discretionary, staples, real estate, materials, industrials, financials, communications, and utilities. It holds a basket of stocks from many companies in that single industry, and it trades on a stock exchange just like a regular stock.

A consumer discretionary sector index is a benchmark that measures the performance of a group of publicly traded companies classified under the Consumer Discretionary sector according to the Global Industry Classification Standard (GICS®).

A consumer staples sector index is a stock market index that tracks the performance of companies classified under the consumer staples sector according to the Global Industry Classification Standard (GICS®). 

A energy sector ETF is a type of investment vehicle that provides exposure to a diversified portfolio of companies operating within the energy industry. Energy ETFs are exchange-traded funds that invest in companies involved in the exploration, production, and management of energy resources, including oil, natural gas, renewable energy.

A healthcare sector ETF is a type of investment vehicle that provides exposure to a diversified portfolio of companies operating within the healthcare industry.

Standard deviation is a statistical measure of how spread out the values in a dataset are from their mean, with a low value indicating tight clustering around the average and a high value indicating greater dispersion.

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 Baird Strategas, 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 Baird Strategas, 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.