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The S & P 500 is closing out the first quarter on an epic win streak: The index is up 10% year to date and an amazing 25% in the past five months. Select S & P 500 sectors YTD Communication Services up 15% Technology up 12% Energy up 11% Financials up 11% Industrials up 10% Health Care up 8% The only sector down this quarter is real estate, off by 3% in the period. About 70% of the S & P 500 is in the green this year. The S & P 500 advance/decline has been on a tear since the middle of January, with far more stocks advancing on a daily basis than declining. "We saw persistent strength with the S & P 500 up every month from November through February, and this has nearly always been followed by more months of strength," he said.
Persons: Todd Sohn, Strategas, It's, Russell, Ned Davis, Davis, Alec Young Organizations: Communication Services, Technology, Energy, Care
There may be a stronger case to invest in single stocks over exchange-traded funds in the weight loss space. With just two players currently at the forefront of the U.S. obesity drug market, ProShares' Simeon Hyman questions the relevance of weight loss ETFs for investors looking to buy into the industry. "If the benefits are going to incumbents, then maybe there isn't a theme per se that needs to be exploited." Strategas' Sohn also suggested that ETFs based on themes, rather than sectors or indices, might be falling out of favor with investors. So far in 2024, Novo Nordisk has gained 29% and Eli Lilly is up 30%, as of Wednesday's close.
Persons: Todd Sohn, Eli Lilly, Lilly, CNBC's, ProShares, Simeon Hyman, Sohn Organizations: Roundhill, Novo Nordisk Locations: U.S, Novo
One of Wall Street's favorite investment vehicles turns 25 years old on Sunday, but shows no signs of fading to the background as it ages. One of the main conversation points around the 2023 rally for the QQQ, and the entire U.S. market, is the dominance of just a handful of key stocks. Over the years, many key stocks have left the fund, including former top performers like Nextel Communications and Sun Microsystems, which were bought out. Related plays Competition in the ETF industry for the QQQ has expanded dramatically over the past quarter century, including from other Invesco funds. That fund is less than four years old but has already surpassed $20 billion in total assets.
Persons: Wall, Ryan McCormack, McCormack, Todd Sohn Organizations: Nasdaq, Qs, Microsoft, Intel, Qualcomm, Nvidia, Broadcom, Nextel Communications, Sun Microsystems, Pepsico, Amgen Locations: United States, U.S
The Scope 3 disclosure requirements have drawn strong criticism from many corporations, who claim the regulations are too burdensome. The climate disclosure rule was first proposed in March 2022. Since Congress has not passed major climate legislation for years, opponents of the SEC's climate rule will likely sue the SEC and cite West Virginia v. EPA, again arguing that Congress has not granted specific authority for the SEC to act on climate change. The disclosures required from the proposed SEC rule may shuffle the deck on companies that are considered "green" or "not so green." Arne Noack, manager of the Xtrackers S&P 500 ESG ETF and DWS Head of Systemic Investment Solutions for the Americas, will be the guest on ETF Edge at 1:10 p.m.
Persons: Gary Gensler, Gensler, overreach, Joe Biden, Kathleen McLaughlin, Arne Noack, Noack, Todd Sohn, He'll, Dave Nadig Organizations: SEC, U.S ., Banking, Housing, Urban Affairs, Capitol, Washington , D.C, The Institute, New York University School of Law, Environmental Defense Fund, Reuters, Securities, Exchange, Walmart, APA, EPA, Act, America, Corporate, Equity, Systemic Investment Solutions, Edge Locations: Washington ,, America, West Virginia, Virginia, ESG, Americas, ETFedge.cnbc.com
The S & P 500 is ending February with a gain of almost 5%. S & P 500: Four big months November: up 8.9% December: up 4.4% January: up 1.6% February: up 4.6% The November gain of 8.9% was one of the 20 best monthly performances in history. The S & P has advanced about 5% since passing the old January 2022 historic high, which it crossed on Jan. 19, this year. Put another way: the S & P has recovered all the bear market losses from the old high in January 2022 to the bear market bottom in October 2022, and added another 5%. "Yet it also offers encouragement that no post-recovery selloff saw the start of a new bear market before rebounding and proceeding onto additional new highs."
Persons: Steve Starker, Todd Sohn, Eli Lilly, Nicholas Colas, Sam Stovall Organizations: Nvidia, P, Technology, Services, Care, Broadcom, Communication Services, Meta, Health Care, Merck, Depot, Costco, JPMorgan, Mastercard, Berkshire Hathaway, Research Locations: BTIG
According to VanEck CEO Jan van Eck, oil stocks are getting a raw deal. The companies are arguably the next best cash flowing companies [compared to] the semiconductors ," he told CNBC's "ETF Edge" this week. "They're trading at double-digit cash flow yields for E&Ps [exploration and production] and sectors in the oil market. His firm runs the VanEck Oil Services ETF . Strategas' Todd Sohn also characterizes oil stocks as unloved and sees potential for a turnaround.
Persons: Jan van Eck, CNBC's, Baker Hughes, van Eck, Strategas, Todd Sohn Organizations: VanEck Oil Services, Schlumberger, Halliburton
As megacap tech stocks continue to fuel the rally on Wall Street, investors appear to be betting even more heavily that the big run for those market leaders will continue. Between the start of December and Feb. 2, tech sector funds brought in about $5.2 billion — more than double the next closest sector — according to Strategas. In fact, cumulative flows into all other sector funds combined have been net negative over the past three months. Not all tech sector funds will include every member of the Magnificent 7. The biggest health care sector funds on the market include the Health Care Select SPDR Fund (XLV) and the Vanguard Health Care ETF (VHT) .
Persons: Todd Sohn, " Sohn, Sohn's, Chris Verrone, Verrone Organizations: Nvidia, Vanguard Information Technology, Apple, Microsoft, Vanguard Health Care
Semiconductor stocks have been on a tear for more than a year, led by Nvidia , which has emerged as a leading stock in the excitement around artificial intelligence. That has helped the S & P 500 enter a new bull market and made the chipmakers an increasingly influential part of the major market indexes. "The % weight of the Semiconductors within the S & P 500 is now at nearly 9%. For example, the best-performing fund in the category so far this year is the VanEck Semiconductor ETF (SMH) . The ETF tracks the MVIS US Listed Semiconductor 25 Index , which has a modified market cap weight approach.
Persons: NVDA, Todd Sohn, . Sohn, Sohn Organizations: Semiconductor, Nvidia, VanEck Semiconductor, P Semiconductor
The small-cap Russell 2000 has dropped close to 4% against a fractional gain in the S & P 500 year to date. In broad terms, the S & P 500 could retreat to 4600 or so – about 4% down from here – and still be in a routine technical check-back to its latest launch point in early December. Todd Sohn of Strategas notes that the Invesco S & P 500 Equal Weight ETF (RSP) saw inflows go vertical last year to $13.5 billion, 30% above its prior 12-month record. Betting on 'peacetime' Fed cuts Right or wrong, the market debate right now can never get far before turning into a Fed-policy-path discussion. Last week's CPI and PPI data added to the market's collective conviction that inflation's downside momentum is strong, opening the way for "peacetime" Fed rate cuts.
Persons: that's, Russell, Ned Davis, Tim Hayes, Tony Pasquariello, Goldman Sachs, Henry McVey, KKR's, McVey, Morgan Stanley, Todd Sohn, Strategas, they're, Jerome Powell Organizations: Ned Davis Research, Goldman, Nasdaq, Apple, CPI, PPI Locations: U.S
The India SENSEX Index, an index of 30 large companies listed on the Bombay Stock Exchange, is up 18% this year. The iShares MSCI India ETF (INDA) is at a new high. You run several international ETFs focused on the internet and ecommerce, including the India Internet & Ecommerce ETF (INQQ). The internet companies are the fastest growing consumer companies. The India Internet economy may grow 500% by 2030.
Persons: Burton Malkiel, Kevin Carter, Todd Sohn, There's Organizations: Bombay Stock Exchange, Edge, Chemical Bank, Princeton University, EMQQ, India, Ecommerce, Strategas Securities, Microsoft, Apple, India's Tata Group, Bajaj Financial, China ETF, White House Locations: Europe, India, China, United States
Investors nearing retirement are looking for ways to earn stable income while still growing their assets long term. Sohn suggested that investor appetite for stable income products has grown in part because of this year's narrow market leadership. That's leading some experts to recommend actively managed strategies, which represent 23.3% of all flows into equity and income products this year, according to data from Strategas. Brendan McCarthy, Goldman Sachs Asset Management's managing director of exchange-traded funds, contends that active ETFs with an options overlay strategy can help investors achieve those stable returns. McCarthy manages Goldman Sachs' new active funds, Goldman Sachs S&P 500 Core Premium Income ETF (GPIX) and Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ).
Persons: Todd Sohn, CNBC's, Sohn, That's, Brendan McCarthy, Goldman, McCarthy, Goldman Sachs, GPIX, GPIQ Organizations: Goldman, Goldman Sachs Nasdaq, Nasdaq Locations: Strategas, Goldman Sachs
The Global X MSCI Argentina ETF , which offers exposure to a basket of the country's most liquid stocks, soared more than 13% on Monday and hit its highest level since September. While the South American country's markets are closed on Monday for a local holiday, U.S.-listed shares of Argentinian companies also surged in U.S. trading. The gains for the ETF came through large amounts of small trades, Todd Sohn, an ETF analyst at Strategas in New York, said. By mid-morning, the value of trading in the ETF had topped $11 million, compared with average of about $1 million a day throughout 2023. "These small country funds are ideal vehicles for small day traders who jump on events" like Sunday's presidential election in Argentina, Sohn said.
Persons: Agustin Marcarian, Argentina's Javier Milei, Todd Sohn, Sohn, Suzanne McGee, Megan Davies, Andrew Heavens Organizations: REUTERS, Argentina ETF, Management, Inc, U.S, Banco, Grupo Financiero, Thomson Locations: Buenos Aires, Argentina, American, New York, ARGT, Grupo Financiero Galicia
REUTERS/Nicholas Roberts/File Photo Acquire Licensing RightsNov 13 (Reuters) - GMO LLC, the asset management firm co-founded by veteran investor Jeremy Grantham, will launch its first exchange-traded fund (ETF) on Wednesday. Holdings in GMO's quality stock-focused mutual funds include companies like Microsoft (MSFT.O), Johnson & Johnson (JNJ.N) and Apple (AAPL.O). About 22% of all inflows into ETFs this year have been to active ETFs, which represent only 7% of total ETF assets, according to Todd Sohn, an ETF analyst at Strategas. The fund will be managed by Tom Hancock, who has been running a $7.9 billion mutual fund with a similar focus, the GMO Quality III , since 2009. The GMO launch is the second steered to market by the Goldman Sachs ETF Accelerator, which offers asset managers consulting advice on each stage of the launch process.
Persons: Jeremy Grantham, Nicholas Roberts, Johnson, Todd Sohn, Tom Hancock, Goldman Sachs, Hancock, Suzanne McGee, Ira Iosebashvili, Lisa Shumaker Organizations: Pace University, REUTERS, Quality, Holdings, Microsoft, Apple, CFRA Research, Goldman, Thomson Locations: Oxford, New York
The furious rise in interest rates appears to be fueling a spike in trading for long-term bond products, even those focused on high quality Treasurys. While many long-term bond funds have seen recent inflows, the iShares 20+ Year Treasury Bond ETF (TLT) is extending its ETF market leadership position. The popularity of ARKK was a classic momentum trade, while bond funds have mostly been crushed over the past year. TLT YTD mountain Long-term bond funds like TLT have fallen sharply in 2023. Klingelhofer did say he was more interested in adding mid-term duration than long-term duration products, however.
Persons: Todd Sohn, ARKK, " Sohn, Sohn, Jeff Klingelhofer, Klingelhofer, Allison Bonds, it's, Bonds Organizations: Treasury Bond ETF, Innovation, CNBC, Thornburg Investment Management, State Street Global Advisors
Mainstream investment giants such as BlackRock (BLK.N) and Fidelity, as well as crypto-focused firms like Grayscale, have filed applications for spot bitcoin ETFs. U.S. crypto firm NYDIG estimates demand for a spot bitcoin ETF at around $30 billion. Their calculation compares the sizes of the gold and bitcoin ETFs - $210 billion versus $28.8 billion, respectively - and adjusts them for their relative volatility. BlackRock declined to comment on its pending spot bitcoin ETF, other than to confirm that it is still awaiting final SEC approval. His forecast is based on how demand evolved in smaller markets where spot bitcoin ETFs already exist, such as Canada.
Persons: Dado, Dave Mazza, George Gagliardi, cryptocurrencies, bitcoin, Todd Sohn, Steven McClurg, Crypto, Matthew Sigel, Matthew Hougan, Steve Sosnick, Suzanne McGee, Ira Iosebashvili, Michelle Price Organizations: REUTERS, Roundhill Investments, Fidelity, U.S . Securities, Exchange, Coromandel Wealth Management, Strategas Securities, Boston Consulting, BlackRock, SEC, Bitwise Investments, Interactive, Thomson, Reuters Locations: U.S, BlackRock, Lexington , Massachusetts, Canada
Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. The fund's price fell nearly 4% in the week, as mixed results from megacaps like Alphabet (GOOGL.O) weighed on the sector. Tech funds saw inflows of $2 billion in the week to Wednesday, their largest in eight weeks, according to BofA Global Research, which it attributed to investors "buying the dip". The $14 billion ProShares UltraPro QQQ (TQQQ.O) posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%. The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF (SMH.O) posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
Persons: Todd Sohn, Todd Rosenbluth, Vanda Research's, Bansari Mayur, Shweta Agarwal Organizations: Technology ETF, Apple, Microsoft, Strategas Securities, VettaFi . Tech, Nasdaq, Tech, BofA Global Research, Fund, Semiconductor, Thomson Locations: VettaFi, Bengaluru
The Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL.O), the largest single-stock ETF for bullish bets on Tesla's shares, saw net daily inflows of $24.9 million on Thursday, according to Lipper data. Tesla's shares are up 72.3% this year. Tesla was also the most-bought stock among retail traders on Thursday, with net buys of $159.5 million, according to data from Vanda Research. On the other side, two ETFs bearish on Tesla, the $58 million Direxion Daily TSLA Bear 1X Shares ETF (TSLS.O) and the $109.6 million AXS TSLA Bear Daily ETF (TSLQ.O), saw net outflows of over $1 million each. Rex Shares and Tuttle Capital Management launched a suite of hyper-levered single-stock exposure funds on Thursday, including the T-REX 2X Long Tesla Daily Target ETF (TSLT.O), the T-REX 2X Inverse Tesla Daily Target ETF (TSLZ.O).
Persons: Elon Musk, Tesla, Todd Sohn, Rex Shares, Bansari Mayur, Ira Iosebashvili, Leslie Adler Organizations: REUTERS, Strategas Securities, Vanda Research, Tuttle Capital Management, Tesla, Target, Thomson Locations: Oslo, Norway, Victoria, Bengaluru
The S & P 500 bottomed out on October 12 last year with a close of 3,577. Lopsided gains While the S & P has seen healthy gains off the bottom, the gains have been lopsided. He counts 11 periods of notable non-recession declines in the S & P 500 since WWII. Money keeps pouring into short-term bonds and money market funds For the first time in decades, bonds and money markets are serious competitors for stocks. A lot of people seem very content to leave money in 5% money market funds, perceiving little risk/reward in owning stocks.
Persons: Russell, Todd Sohn, Strategas, Covid, Sohn, Sam Stovall, Sam Organizations: Growth, CFRA Research, U.S .
Oct 12 (Reuters) - Simplify Asset Management plans to roll out three new exchange-traded funds (ETFs) that rely on artificial intelligence rather than human beings to select portfolio holdings, adding to a nascent sub-sector that has so far delivered underwhelming results for investors. "A large portion of the investment community remains wary of putting their money into a product that depends on algorithms," Sohn said. The largest fund in this $673.5 million slice of the $7 trillion market for U.S. ETFs is the WisdomTree U.S. AI Enhanced Value Fund (AIVL.P), with net assets of $363.4 million. "I'm not sure the technology is there yet, or that it's speaking to investors,” said Bryan Armour, an ETF analyst at Morningstar. Read NextReporting by Suzanne McGee; Editing by Ira Iosebashvili and Chris ReeseOur Standards: The Thomson Reuters Trust Principles.
Persons: Boosted.ai, Todd Sohn, Sohn, AIEQ, I'm, , Bryan Armour, Suzanne McGee, Ira Iosebashvili, Chris Reese Organizations: Management, SEC, Morningstar, Strategas Securities, AI, Equity ETF, Fund, Momentum, Thomson Locations: U.S
Why now may be the time to own corporate bonds
  + stars: | 2023-10-07 | by ( Meredith Mutter | ) www.cnbc.com   time to read: +1 min
There may be advantages to owning corporate bonds right now. JPMorgan's Bryon Lake believes his firm's Ultra-Short Income ETF (JPST) is ideal for those looking to make money outside the volatile stock market. "Some of the corporates got higher quality than the U.S. government [bonds] right now," he told CNBC's "ETF Edge" this week. Lake, JPMorgan's global head of ETF Solutions, also sees the firm's active management strategy as an advantage of owning the JPST. Strategas Securities' Todd Sohn also likes corporate bonds, citing the the monetary policy backdrop.
Persons: Lake, CNBC's, you've, Todd Sohn Organizations: ETF Solutions, Securities Locations: U.S
Ether made its ETF debut with the release of six different futures products on Monday. ProShares Advisors is behind three of the new ETFs: Ether Strategy ETF (EETH), Bitcoin & Ether Equal Weight Strategy ETF (BETE) and the Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). The regulated futures market in an ETF is a great solution, he added. ProShares also manages the Bitcoin Strategy ETF (BITO ), which is the largest bitcoin futures ETF on the market. It follows bitcoin futures and is up more than 37% year to date.
Persons: BETH, Simeon Hyman, ProShares, CNBC's, Hyman, Todd Sohn, " Sohn Organizations: ProShares Advisors, U.S . Securities, Exchange Commission, SEC, Strategas Securities
Striking United Auto Workers (UAW) members from the General Motors Lansing Delta Plant picket in Delta Township, Michigan U.S. September 29, 2023. REUTERS/Rebecca Cook/File Photo Acquire Licensing RightsOct 4 (Reuters) - Exchange-traded funds tracking automakers saw net outflows last month on worries over the United Auto Workers' (UAW) strike against the "Detroit Three" and higher interest rates. Production at General Motors (GM.N), Ford (F.N) and Chrysler parent Stellantis (STLAM.MI) have taken a beating as the UAW strike headed into the 20th day. "The redemption of ~20% of the (First Trust) ETF's net assets in mid-September could have been related to the UAW strike, although it's tough to say with certainty." The $1.02 billion Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL.O) saw its first month of outflows in four.
Persons: Rebecca Cook, Bryan Armour, that's, Todd Sohn, Bansari Mayur, Anil D'Silva Organizations: United Auto Workers, UAW, General Motors Lansing Delta Plant, Michigan U.S, REUTERS, Exchange, United Auto Workers ', General Motors, Ford, Chrysler, Nasdaq Transportation, North America, Morningstar, JPMorgan, GM, X Autonomous & Electric Vehicles, Trust, Global, Strategas Securities, Thomson Locations: Delta Township, Michigan, Bengaluru
.DXY 1Y mountain The dollar index hit new highs for 2023 in September. "Energy equities haven't really kept up with the energy market rally," she added. The latest iShares outlook highlighted the firm's U.S. Energy ETF (IYE) as a way to play higher oil prices. Other major funds in that category include the Energy Select Sector SPDR Fund (XLE) , the Vanguard Energy Index ETF (VDE) and the Fidelity MSCI Energy Index ETF (FENY) . Investors can outsource currency market decisions in the form of managed futures ETFs, which have exposure to currency markets in addition to other asset classes.
Persons: Gargi Chaudhuri, Morgan Stanley, Sasikanth Chilukuru, It's, Chaudhuri, Todd Sohn, Sohn, Andrew Beer, Beer, You've, Anastasia Amoroso, There's, Amoroso Organizations: Texas, BlackRock, iShares, Energy, U.S . Energy, Vanguard Energy, Fidelity MSCI Energy, Wall, U.S ., Invesco DB, Fund, WisdomTree Bloomberg, Investors, Global, Apple, Nvidia Locations: U.S, Saudi Arabia, DBi, Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInflows to bond ETFs on the rise: Strategas Securities' Todd SohnTodd Sohn, Strategas Securities ETF and technical strategist, joins 'The Exchange' to discuss sentiment trends in the ETF market, volatility in overbought bond ETFs, and interest rate pressures hurting regional banks.
Persons: Todd Sohn Todd Sohn Organizations: Strategas Securities
REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsSept 26 (Reuters) - Approvals on new exchange-traded funds, including bitcoin spot ETFs, could face delays if the U.S. government shuts down next month for the fourth time in a decade. "I'm not sure if ETFs that have been filed for approval can move forward with the government shutdown," said Todd Rosenbluth, head of research at VettaFi. "This would just delay yet another decision on the never ending spot Bitcoin decision," said Todd Sohn, ETF and technical strategist at Strategas Securities. "ETFs are just pass through vehicles ... impact on the underlying markets will obviously impact ETFs," said Hector McNeil, co-CEO and founder of HANetf. "People will also probably pause if they're about to launch (new ETFs) and wait for steady waters."
Persons: Dado Ruvic, Exchange Commission's, Gary Gensler, I'm, Todd Rosenbluth, Todd Sohn, Hector McNeil, Bansari Mayur, Ira Iosebashvili, Anil D'Silva Organizations: REUTERS, Securities, Exchange, SEC, Strategas Securities, Thomson Locations: U.S, Bengaluru
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