ETFs & Markets with Todd Sohn: Humans Love Cash

06/14/2024

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Strategas Asset Management ETF Strategist Todd Sohn analyzes the top 10 equity weights contribution to the markets, specifically their contribution to YTD returns, sector flows, and long-term fund flows.

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.

“Weighted” is a description of adjustments to a figure to reflect different proportions or "weights" of components that make up that figure.

Fund flows represent the cash that goes into or out of companies, financial assets, sectors, or other market categories.

The term “federal funds rate” refers to the target interest rate range set by the Federal Open Market Committee (FOMC). This target is the rate at which commercial banks borrow and lend their excess reserves to each other overnight.

Money market funds are a type of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).

A mutual fund is a type of investment that pools money from many people to invest in a variety of assets like stocks, bonds, or other securities.

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.

Fixed Income Exchange-Traded Funds (ETFs) are investment products that give you exposure to the performance of a diversified basket of bonds.

Fixed income mutual funds are those mutual fund schemes whose underlying assets are fixed-income securities, such as - government securities, debentures, corporate bonds, and other money market instruments. These funds are also broadly known as debt funds.

An equity mutual fund is a professionally managed, pooled investment vehicle comprised primarily of stocks.

Vanguard Federal Money Market Fund’s investment objective is to seek to provide current income while maintaining liquidity and a stable share price of $1.

This communication was prepared by Strategas Asset Management, LLC ("we" or "us" or “our”). This communication represents our views as of 05/28/2024, which are subject to change, and are 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 is an SEC Registered Investment Adviser affiliated with Strategas Securities, LLC, a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser. Both 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.