Bitcoin vs. Gold
10/24/2024
In this week’s ETF and markets video, Todd Sohn updates where index concentration stands today, historical comparisons for overbought markets, tactical flows, and how Bitcoin ETFs are stacking up.
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. This communication represents our views as of 10/22/2024, which are subject to change, and presented for illustrative purposes only. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. 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. 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
Definitions
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.
The SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund that seeks to track the performance of the S&P 500 index, which is a basket of the largest publicly traded companies in the U.S. SPY is the oldest ETF listed on a U.S. exchange and is one of the most popular ETFs in the world.
Cumulative asset flow is the total cash flow over a specific period of time, and it provides a view of a company's financial performance. It's calculated by adding the current period's net cash flow to the previous cumulative cash flow.
Spot Bitcoin ETFs are financial instruments that track Bitcoin's price by holding the actual cryptocurrency in reserve and backing each share of the ETF with real Bitcoin.
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.
An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock.
Equity ETFs invest in a basket of company stocks (also known as equities or shares). They are the most common type of ETFs.
Fund flows represent the cash that goes into or out of companies, financial assets, sectors, or other market categories.
Tactical asset flow is a short-term forecasting tool used to plan asset flows and avoid financial distress. It's often used in business turnaround situations when a company's financial forecasts show less than three months' cash runway.
Assets under management (AUM) is the market value of the investments managed by a person or entity on behalf of clients. AUM is used in conjunction with management performance and management experience when evaluating a company.
An equity market is a form of equity financing in which a company gives up a certain percentage of ownership in exchange for capital.
An equity investment is money that is invested in a company by purchasing shares of that company in the stock market.
Volatility is how much and how quickly prices move over a given span of time; a measure of dispersion around the mean or average return of a security.
AAPL, Apple Inc. Common Stock
NVDA, NVIDIA Corporation Common Stock
MSFT, Microsoft Corporation Common Stock
“Weighted” is a description of adjustments to a figure to reflect different proportions or "weights" of components that make up that figure.
Large cap refers to a company with a market capitalization value of more than $10 billion.
A large-cap index is a collection of stocks and shares from large-cap companies, which are companies with a market capitalization of at least $10 billion.
The Russell 1000® Growth Index measures the performance of the large- cap growth segment of the US equity universe. It includes those Russell 1000 companies with relatively higher price-to-book ratios, higher I/B/E/S forecast medium term (2 year) growth and higher sales per share historical growth (5 years).
