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

• Gold and Bitcoin reflect ease of ETFs
• Flows and volumes today vs. earlier in the year
• A question on the Fixed Income ETF landscape

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.

An options income ETF is an exchange-traded fund that invests in assets like stocks or indexes and sells options contracts (such as covered calls) to generate cash premiums. The fund then distributes this extra cash as regular monthly or quarterly income to its shareholders.

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

An indicated yield for an Exchange-Traded Fund (ETF) is a forward-looking estimate of the annual dividend or income return. It takes the fund's most recent regular distribution, multiplies it by the expected number of payments for the year, and divides that total by the ETF’s current share price or net asset value (NAV).

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.

A floating rate Exchange-Traded Fund (ETF) is an investment fund that holds debt instruments with variable interest rates. These rates adjust periodically (or "float") up or down alongside changes in benchmark interest rates like SOFR.

A Treasury bill ETF is an exchange-traded fund that holds a basket of short-term U.S. government debt securitiesmaturing in one year or less.

Long duration fixed income refers to bond investments or portfolios with a high sensitivity to interest rate changes

Short duration fixed income refers to a category of debt investments—such as bonds or bond funds—with an effective duration of typically 1 to 3 years.

Ultrashort duration fixed income refers to a category of debt investments with an average portfolio duration of less than one year.

An intermediate duration fixed income portfolio invests in bonds with an average duration of roughly 3 to 5 years.

An inflation ETF is an exchange-traded fund designed to protect an investor’s purchasing power from rising prices.

A securitized exchange-traded fund (ETF) is an investment fund that trades on public stock exchanges and holds a diversified basket of securitized debt, which are fixed-income instruments backed by pools of underlying loans like mortgages, auto loans, or corporate debt.

A mortgage exchange-traded fund (ETF) is an investment fund traded on public stock exchanges that holds a basket of mortgage-backed securities (MBS).

A preferred exchange-traded fund (ETF) is a fund that tracks a basket of preferred stocks or hybrid securities, trading on public exchanges like a regular stock.

A bank loan ETF (also called a senior loan or leveraged loan ETF) is an exchange-traded fund that invests in corporate loans made by banks to lower-credit or highly indebted companies.

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.