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

• Where high level equity ETF flows stand
• The collapse of Beta for certain areas
• Corners we believe are ignored into September

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.

Standard deviation is a number that shows how far the numbers in a data set are spread out from their average (mean). A low number means the data points are close to the average. A high number means the data points are spread out over a wide range.

% 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.

A cyclical sector exchange-traded fund (ETF) is an investment fund that tracks a basket of stocks from industries whose revenues and profits rise and fall closely with the health of the broader economy.

Defensive sector ETFs are exchange-traded funds designed to protect a portfolio from market drops and high volatility. They hold assets like non-cyclical stocks (consumer staples, utilities, healthcare).

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 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, such as Biotech or Providers.

A financials sector ETF is a type of investment vehicle that provides exposure to a diversified portfolio of companies operating within the financials industry, such as Banks or Insurance.

A tech sector ETF is a type of investment vehicle that provides exposure to a diversified portfolio of companies operating within the Tech industry, such as Semiconductors of Software.

The low-volatility factor is an investment strategy that targets stocks or assets with prices that swing less than the overall market.

SPLV ETF (Invesco S&P 500 Low Volatility ETF) is an exchange-traded fund that holds the 100 stocks from the S&P 500 with the lowest price movement over the past 12 months. It aims to lower portfolio risk and smooth out market ups and downs.

A gold exchange-traded fund (ETF) is an investment fund that tracks the domestic or global price of gold.

A spot crypto exchange-traded fund (ETF) is a regulated investment fund traded on traditional stock exchanges.

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.