ETFs & Markets with Todd Sohn: Don't Fear a Low VIX

11/29/2023

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Strategas Asset Management ETF Strategist Todd Sohn examines the perk-up from equity ETF flows, the opportunity cost involved with owning treasury ETFs, and why you shouldn’t fear a low VIX.

This communication was prepared by Strategas Asset Management, LLC ("we" or "us" or “our”). This communication represents our views as of 11/27/2023, 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.

Index 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 VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX℠) call and put options.

The Invesco Russell 1000 Equal Weight ETF (“EQAL”) tracks an index of the 1,000 largest US stocks. Each sector receives equal weight, and each stock within a sector receives equal weight.

The Invesco S&P 500 Equal Weight ETF (“RSP”) tracks an equal-weighted index of S&P 500 companies. Probably one of the best-known equal-weighted ETFs, RSP simply takes all the stocks in the S&P 500 and weights them equally.

The Invesco S&P 100 Equal Weight ETF (“EQWL”) tracks the an equally-weighted index composed of the 100 largest companies in the US equity markets.

SPDR® Global Dow ETF (“DGT”) provides equal-weighted exposure to 150 of the world's most prominent companies as determined by the Dow Jones Averages Committee.

The Invesco S&P 500® Equal Weight Health Care ETF (”RSPH”) is based on the S&P 500® Equal Weight Health Care Index (Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Index.