In this week’s ETF & Markets video…

• Spring rally or Summer correction: Tech inflows persist
• Emotional behavior via Semiconductor ETF volume
• 6-years since the Bond Aggregate index peaked
• An important structural shift within Fixed Income

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.

The Nasdaq-100 is a stock market index tracking 100 of the largest non-financial companies listed on the Nasdaq Stock Market, weighted by market capitalization.

Invesco QQQ is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consist of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The Fund and the Index are rebalanced quarterly and reconstituted annually.

Semiconductors - Companies primarily engaged in the design, manufacture, and distribution of semiconductors, integrated circuits, microprocessors, and memory chips.

Software - Software is defined as companies that design and develop computer programs and applications that allow users to perform specific tasks on computers or other devices.

Broad Tech is a sector-based industry that encompasses companies engaged in information technology services, software, and related infrastructure. 

Thematic tech industry refers to a subset of the broader technology sector where investments are focused on specific, high-impact trends or innovations that are expected to drive long-term growth across multiple industries. Instead of targeting a single traditional sector (like semiconductors or software), thematic investing in tech aligns portfolios with transformative technology themes such as artificial intelligence (AI), cybersecurity, cloud computing, robotics, and 5G connectivity

Treasuries are low-risk debt obligations issued by a national government to borrow money from the public.

Bloomberg Bond Aggregate Index - The Bloomberg Aggregate Bond Index is a broad-based, market capitalization-weighted benchmark that tracks the performance of U.S. investment-grade, fixed-rate, taxable bonds.

Bloomberg Long Duration Treasuries Index - The Bloomberg US Long Treasury Total Return Index measures the performance of US dollar‑denominated, fixed‑rate, nominal debt issued by the U.S. Treasury with 10 years or more to maturity.

Price High - most often refers to the highest price of a security — such as a stock — over a specific period, typically the past 52 weeks, adjusted for any stock splits.

Price Low - most often refers to the lowest price of a security — such as a stock — over a specific period, typically the past 52 weeks, adjusted for any stock splits.

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.