Defintions:
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.
A bull market reflects a price trend in which prices rise for an extended period of time.
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.
Bond Exchange-Traded Funds (ETFs) are investment products that give you exposure to the performance of a diversified basket of bonds.
A “Fed rate cut” refers to when the Federal Reserve is lowering the Fed funds target rate.
Return is the financial gain or loss on an investment and is typically expressed as the change in the dollar value of an investment over time.
A correction is a decline of 10 percent or more from an asset's most recent high.
The iShares Core US Aggregate Bond ETF (“AGG”) seeks to track the investment results of the Bloomberg U.S. Aggregate Bond Index. The index measures the performance of the total U.S. investment-grade bond market.
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.
The iShares TIPS Bond ETF (“TIP”) seeks to track the investment results of the ICE U.S. Treasury Inflation Linked Bond Index composed of inflation-protected U.S. Treasury bonds. The index tracks the performance of inflation-protected public obligations of the U.S. Treasury, commonly known as “TIPS,” that have a remaining maturity of more than one year.
Cash ETFs, or exchange-traded funds, are a type of investment that aims to provide returns similar to short-term fixed income securities. They are designed to be low-risk and provide liquidity, or easy access to funds.
An inverse exchange-traded fund (ETF) is a financial instrument that provides returns that are the opposite of the returns of an underlying index or asset. Inverse ETFs can be used to profit from or hedge against market declines.
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 01/16/2025, 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
