In this week’s ETF & Markets video…

• Measuring Semiconductor ETF activity
• How Emerging Markets plays into this setup
• Historical flows for E.M. related regions

Definitions:

Emerging markets - Developing countries with growing economies, expanding industrialization, and increasing integration into the global market.

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.

The median is the exact middle value in a set of data when all the numbers are sorted in order from smallest to largest. It splits the data into two

equal halves, meaning 50% of the values are below the median and 50% are above.

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.

Levered / Inverse ETF - Leveraged and inverse ETFs are specialized, high-risk financial instruments designed to track the daily performance of an underlying index or asset, but with amplified or opposite results. Because they are designed to reset their exposure daily, they are primarily used by sophisticated traders for short-term tactical plays rather than long-term investing. 

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.

An emerging markets ETF is an exchange-traded fund that tracks a basket of stocks or bonds from developing economies, such as China, India, Brazil, and South Africa. These funds offer instant, diversified exposure to regions experiencing rapid economic growth, industrialization, and expanding middle classes

EEM - The iShares MSCI Emerging Markets ETF seeks to track an index composed of large- and mid-cap equities from emerging market countries.

VWO – The Vanguard Emerging Markets ETF invests in stocks of companies located in emerging markets around the world, such as China, Brazil, Taiwan, and South Africa. Goal is to closely track the return of the FTSE Emerging Markets All Cap China A Inclusion Index.

A semiconductor ETF is an investment fund that tracks a basket of stocks involved in the design, manufacturing, and distribution of computer chips and semiconductor equipment.

A China ETF is an investment fund that tracks the performance of a basket of Chinese stocks or bonds. Traded directly on major stock exchanges like individual shares, they allow overseas investors to gain exposure to China's economy

A Taiwan ETF is an investment fund that tracks a benchmark index of Taiwanese equities, allowing investors to trade a diversified portfolio of Taiwan-based companies on major stock exchanges just like an individual stock.

A South Korea ETF is an exchange-traded fund that pools money from investors to track a basket of stocks representing the South Korean equity market, allowing investors to trade the country's economic performance as a single asset on a U.S. exchange.

A Lat-Am ETF is an investment fund that trades on major stock exchanges and holds a diversified basket of assets focused on Latin America. These funds provide investors with regional exposure to emerging markets, primarily tracking the equity or bond performance of countries like Brazil, Mexico, Colombia, and Chile.

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

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.