In this week's ETF and markets video...

• Checking in on year 4 of the bull market
• Mutual funds continue to see outflows
• Semiconductor ETF activity is exploding
• Semis percent weight in rare air

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.

Trading volume is the total quantity of shares, contracts, or units of a security (like stocks, bonds, or commodities) that change hands between buyers and sellers during a specific period, typically a single trading day. It acts as a key measure of market activity, liquidity, and investor interest.

A leveraged ETF is a specialized, high-risk fund that uses financial derivatives (swaps, futures) and debt to amplify the daily returns of an underlying index or asset, usually by 2x or 3x. Designed for short-term trading, these funds reset daily, meaning they are intended to deliver a multiple of the index's performance for a single day, not over longer periods.

Semiconductors - A semiconductor (semi) ETF is an exchange-traded fund that tracks a basket of stocks involved in the design, manufacturing, and supply chain of computer chips.

Tech Hardware - The tech hardware industry encompasses companies that design, manufacture, and sell physical computing devices, components, and infrastructure, including semiconductors, servers, PCs, and peripherals.

Software - The software industry comprises businesses engaged in the development, maintenance, publication, and distribution of computer software and related services. It spans a wide range of products—including applications, systems software, and SaaS—and is characterized by high R&D investment and a focus on both licensing and subscription-based business models.

Energy Sector - The energy sector is the segment of the economy comprised of companies involved in the exploration, production, refining, and distribution of fuel and electricity, covering both fossil fuels (oil, natural gas, coal) and renewable sources (wind, solar, hydro). It provides the essential infrastructure to power modern society and industries.

GICS - The Global Industry Classification Standard (GICS®) is a four-tiered, hierarchical industry framework developed by MSCI and S&P Dow Jones Indices in 1999 to categorize publicly traded companies globally. It is used by investors and analysts to classify firms into 11 sectors, 25 industry groups, 74 industries, and 163 sub-industries based on principal business activity, such as revenue.

GICS Industry Group - A GICS Industry Group is the second tier of the four-level Global Industry Classification Standard (GICS) system, categorizing companies by their primary business activity. Positioned between Sectors and Industries, there are 25 distinct industry groups.

Equity Mutual Fund - An equity mutual fund is a type of investment fund that pools money from numerous investors to purchase a diversified portfolio of company stocks. Managed by professionals, these funds aim for long-term capital appreciation by investing in shares across various industries, sectors, and company sizes (large-cap, mid-cap, or small-cap).

Rolling Sum - A running total or rolling total is the summation of a sequence of numbers which is updated each time a new number is added to the sequence.

Bull market - A bull market is an extended period of rising asset prices, typically defined as a 20% or more increase in broad market indexes (like the S&P 500) from a recent low. Characterized by high investor confidence, economic growth, and optimism, these markets can last for several years, frequently outlasting bear markets.

Average - An average is a single value that represents the center, typical, or "normal" point of a set of data. Mathematically, it is most commonly the arithmetic mean, calculated by adding all values together and dividing by the total count of values.

A tech bubble is an economic cycle characterized by the rapid, unsustainable inflation of share prices for technology companies, driven by intense investor speculation rather than solid financial fundamentals. These bubbles typically occur when high optimism leads to overvalued stocks, ultimately resulting in a sharp market crash when valuations fall back to realistic levels.

The Great Financial Crisis (GFC), often referred to as the Great Recession, was a severe global economic downturn spanning late 2007 to mid-2009. It was triggered by the collapse of the U.S. housing bubble, resulting in widespread banking failures, plummeting asset values, and the deepest global recession since the 1930s Great Depression.

Diversification is the strategy of spreading investments across various financial assets, industries, or geographic locations to reduce overall portfolio risk and minimize the impact of any single investment's failure.

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.