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Todd Sohn

ETF Strategist

Patrick Rista

Advisory Sales

(646) 292-7984

prista@strategasasset.com

ETFs in 2025 vs. 2024

01/08/2025

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This week, ETF expertTodd Sohn takes us on a comparative journey to 2023 and 2024, peels back the layers of year 3 in the bull market, and spotlights overlooked sectors.

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. 
“Weighted” is a description of adjustments to a figure to reflect different proportions or "weights" of components that make up that figure.
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).
Large cap refers to a company with a market capitalization value of more than $10 billion.
Small cap refers to a company whose market capitalization is considered small, from $250 million to $2 billion.
The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.
A bull market reflects a price trend in which prices rise for an extended period of time. 
An equity market is a form of equity financing in which a company gives up a certain percentage of ownership in exchange for capital.
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.
Sector ETFs focus on groups of companies that are pursuing the same type of business, like energy, health care, utilities, or technology, for example.
Cyclical stocks are stocks with prices that are affected by macroeconomic or systematic changes in the overall economy. They rise and fall with the economy.
Defensive stocks provide consistent dividends and stable earnings regardless of the state of the stock market or economy.
Z-score is a statistical measurement that describes a value's relationship to the mean of a group of values. Z-score is measured in terms of standard deviations from the mean. In investing and trading, Z-scores are measures of an instrument's variability and can be used by traders to help determine volatility.

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 1/06/2025, 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

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