In this week’s ETFs & Markets video, Chief ETF Strategist Todd Sohn highlights two charts focused on the changing landscape of the S&P 500 and two charts on how flows reflect this.

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.

Tech Sector - A Technology Sector ETF (Exchange-Traded Fund) is an investment fund that holds a basket of stocks focusing exclusively on technology companies, such as software, hardware, semiconductors, and IT services.

Healthcare Sector - A healthcare sector ETF is an exchange-traded fund that tracks a basket of stocks focused specifically on healthcare companies, including pharmaceuticals, biotechnology, medical devices, and healthcare services. 

Industrials Sector - An Industrials Sector ETF is an exchange-traded fund that holds a diversified basket of stocks from companies involved in manufacturing machinery, industrial equipment, aerospace and defense, construction, transportation, and professional services. 

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.

Software - A software Exchange Traded Fund (ETF) is a specialized investment fund that trades on stock exchanges, holding a diversified basket of stocks from companies focused on developing software applications, systems, and cloud computing solutions. 

% Weight - The S&P 500 % weight is a float-adjusted market capitalization weighting method. It means a company's influence is determined by its total market value of freely tradable shares, not total shares outstanding. A higher market cap results in a larger percentage weight in the index.

Diversification - Diversification is a risk-management strategy of spreading investments, products, or operations across various categories—such as stocks, bonds, or industries—to reduce exposure to any single asset or risk.

Thematic Tech - A thematic tech ETF is a specialized investment fund that targets specific, long-term technological trends—such as artificial intelligence, cybersecurity, or robotics—rather than tracking broad market sectors. These funds provide concentrated exposure to companies expected to benefit from structural, disruptive, or macroeconomic shifts. Unlike traditional sector funds, they may include companies across various industries that all contribute to a single, transformative theme.

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.