In this week’s ETFs & Markets video, Chief ETF Strategist Todd Sohn discusses:

• Equity ETF flows are accelerating
• Tech in the drivers seat
• Low bar for cyclical positioning

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.

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.

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. 

Consumer Staples Sector - A consumer staples sector ETF is an exchange-traded fund that tracks a basket of stocks focused on essential goods—food, beverages, household products, and personal care. These defensive, low-volatility funds offer exposure to non-cyclical, dividend-paying companies providing stable income during economic downturns.

Utilities Sector - A Utilities Sector ETF is a specialized investment fund that tracks an index of companies providing essential services—electric power, natural gas, and water. These, often called defensive utility funds or equity income ETFs, offer stable, dividend-paying stocks suitable for income-focused portfolios.

Energy Sector - An energy sector ETF is a basket of securities designed to track the performance of companies involved in the energy industry, including oil and gas exploration, production, refining, and equipment services. 

Cyclical Sector - A cyclical ETF isainvestment fund that tracks companies whose revenue is highly sensitive to economic ups and downs, thriving during economic growth and underperforming during downturns. They are primarily used to bet on economic expansion (capitalizing on consumer discretionary spending or industrial growth) or to gain exposure to sectors like automotive, travel, and retail. 

Defensive Sector - A defensive sector ETF is an exchange-traded fund that invests in companies providing essential goods and services, designed to provide stable returns and lower volatility during economic downturns. 

% 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.

Standard Deviation - Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of data values. It indicates how much individual data points differ from the mean (average), with a low standard deviation showing data points are clustered near the mean, and a high standard deviation indicating a wider spread. 

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.