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Todd Sohn

ETF Strategist

Jim Martin

National Accounts & Advisory Sales

(704) 995-3655

jmartin@strategasasset.com

Record Year For ETFs and Grappling With Concentration

12/17/2025

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In this week’s ETFs & Markets video ETF Strategist Todd Sohn discusses record ETF flows, the active ETF boom, the progression of active management within ETFs, investors confrontation with concentration, & leverage into year-end.

Definitions:

Equity ETF – An ETF that invests primarily in stocks, providing exposure to a broad market or specific sectors.

Fixed income ETF – An ETF that invests in bonds or other debt instruments, offering income and diversification.

Non-traditional ETF – An ETF that uses alternative strategies such as leverage, inverse exposure, or active management instead of simple index tracking.

Commodity ETF – An ETF that provides exposure to physical commodities or commodity futures like gold, oil, or agricultural products.

Cryptocurrency ETF – An ETF that tracks the performance of digital assets such as Bitcoin or Ethereum through futures or direct holdings.

Actively managed – A fund where managers select securities to try to outperform a benchmark rather than passively tracking an index.

S&P 500 – A widely used stock market index that tracks 500 large-cap U.S. companies across multiple sectors.

Levered long – An investment strategy or ETF that uses leverage to amplify exposure to an index, aiming for a multiple of its daily return.

Inverse ETF – An ETF designed to deliver the opposite daily performance of its underlying index, often used for hedging or short-term bets.

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.