Core Insights - Investors are increasingly using ETFs for exposure to growth stocks, with Vanguard Russell 1000 Growth ETF (VONG) and Schwab U.S. Large-Cap Growth ETF (SCHG) being popular choices due to their diversification and cost efficiency [1] Group 1: ETF Overview and Composition - VONG tracks the Russell 1000 Growth Index, comprising approximately 500 large-cap U.S. companies with significant exposure to technology, consumer discretionary, and healthcare sectors, with top holdings including Apple, Microsoft, and Amazon [2] - SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, holding around 120 names, providing broader diversification and lower relative weighting in mega-cap tech compared to VONG, while still maintaining stakes in major companies like Alphabet and Nvidia [3] Group 2: Sector Concentration Differences - VONG has a technology weighting near 50%, making it sensitive to tech performance, while SCHG's technology allocation is around 40%, offering more balance and higher exposure to healthcare and consumer discretionary mid-caps [4] - The ongoing sector rotation trend in early 2026 sees investors moving away from mega-cap tech stocks towards small- and mid-cap growth names, which may lead to increased volatility for VONG compared to the more diversified SCHG [5] Group 3: Performance Comparison - As of January 10, 2026, VONG has returned approximately 14.8% year-to-date, while SCHG has returned 13.5%, indicating VONG's slight outperformance but with higher sector concentration risk [6] - Over the past five years, VONG averaged an annual return of 16.2%, compared to SCHG's 15.6%, showing closely matched long-term growth potential but with VONG exhibiting higher volatility [7] Group 4: Expense Ratios and Costs - VONG has an expense ratio of 0.04%, while SCHG is slightly lower at 0.03%, both being low-cost options that may impact long-term returns [8] Group 5: Liquidity and Trading Considerations - VONG averages around 300,000 shares traded daily, while SCHG averages 450,000 shares, indicating that SCHG may offer tighter bid-ask spreads and easier trading for larger quantities [9] Group 6: Market Conditions and Investor Preferences - In early 2026, market conditions favor SCHG for investors seeking balanced exposure amid sector rotation, while aggressive investors may prefer VONG for concentrated tech exposure [10] - The decision between VONG and SCHG depends on risk tolerance, investment horizon, and portfolio composition, with both ETFs positioned to benefit from U.S. equity market growth [11]

Core Insights - Investors are increasingly using ETFs for exposure to growth stocks, with Vanguard Russell 1000 Growth ETF (VONG) and Schwab U.S. Large-Cap Growth ETF (SCHG) being popular choices due to their diversification and cost efficiency [1] Group 1: ETF Overview and Composition - VONG tracks the Russell 1000 Growth Index, comprising around 500 large-cap U.S. companies with significant exposure to technology, consumer discretionary, and healthcare sectors, with top holdings including Apple, Microsoft, and Amazon [2] - SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, holding approximately 120 names, providing broader diversification and lower relative weighting in mega-cap tech compared to VONG, while still maintaining stakes in leaders like Alphabet and Nvidia [3] Group 2: Sector Concentration Differences - VONG has a technology weighting near 50%, making it sensitive to tech performance, while SCHG's technology allocation is around 40%, offering more balance and higher exposure to healthcare and consumer discretionary mid-caps [4] - The ongoing sector rotation trends in early 2026 indicate a shift from mega-cap tech to small- and mid-cap growth names, making SCHG's broader diversification potentially less volatile [5] Group 3: Performance Comparison - As of January 10, 2026, VONG has returned approximately 14.8% year-to-date, while SCHG has returned 13.5%, with VONG showing slightly higher long-term performance at an average annual return of 16.2% over five years compared to SCHG's 15.6% [6][7] Group 4: Expense Ratios and Costs - VONG has an expense ratio of 0.04%, while SCHG is slightly lower at 0.03%, both being low-cost options that may appeal to long-term investors [8] Group 5: Liquidity and Trading Considerations - VONG averages around 300,000 shares traded daily, while SCHG averages 450,000 shares, indicating that SCHG may offer tighter bid-ask spreads and easier trading for larger quantities [9] Group 6: Market Conditions and Investor Preferences - In early 2026, market conditions favor SCHG for investors seeking balanced exposure amid sector rotation, while aggressive investors may prefer VONG for concentrated tech exposure [10][11] - Key considerations for investors include risk tolerance, investment horizon, and how each ETF fits into their broader portfolio strategy [11]

Core Viewpoint - Healthcare investing offers defensive characteristics during market turbulence, but regulatory uncertainty and political risk can lead to sudden selloffs [1] Group 1: Fund Overview - Fidelity MSCI Health Care Index ETF (FHLC) tracks the MSCI USA IMI Health Care Index, providing exposure to U.S. healthcare companies across various sectors [2] - The fund has an expense ratio of 0.084%, which is lower than many competitors, while maintaining over 80 holdings [2] - FHLC's return is driven by capital appreciation from underlying stock holdings and modest dividend income from mature healthcare companies [2] Group 2: Concentration Risk - Eli Lilly (NYSE:LLY) constitutes over 13% of FHLC's portfolio, linking the fund's performance closely to GLP-1 obesity drugs [3] - The stock of Eli Lilly has surged 46% over the past year and is trading near its 52-week high [3] - The top five holdings also include UnitedHealth (NYSE:UNH), Johnson & Johnson (NYSE:JNJ), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV) [3] Group 3: Performance Analysis - FHLC has gained 5.3% over the past month and 17.9% over the past year, outperforming the S&P 500 in both periods [4] - However, over five years, FHLC returned 42.6% compared to the S&P 500's 84.5%, and over ten years, the gap widens to 154% versus 235% [4] - This long-term underperformance is attributed to challenges in the healthcare sector, including drug pricing pressures and slower innovation cycles [5] Group 4: Future Considerations - Recent momentum in FHLC suggests potential sector rotation, but buying after outperformance carries inherent risks [5] - Enhanced ACA premium tax credits have an 87.5% probability of expiring by January 31, 2026 [6]

Core Insights - Healthcare investing is characterized by defensive traits during market volatility, but regulatory and political risks can lead to abrupt selloffs [1] - Fidelity MSCI Health Care Index ETF (FHLC) offers a low-cost entry point for investors seeking exposure to the healthcare sector without selecting individual stocks [1] Fund Overview - FHLC tracks the MSCI USA IMI Health Care Index, providing exposure to U.S. healthcare companies across various segments including pharmaceuticals, biotechnology, medical devices, and health insurance [2] - The fund has an expense ratio of 0.084% and includes over 80 holdings, focusing on capital appreciation and modest dividend income [2] Concentration Risk - Eli Lilly constitutes over 13% of FHLC's portfolio, linking its performance closely to GLP-1 obesity drugs, which have seen a 46% increase in stock price over the past year [3] - The top five holdings also include UnitedHealth, Johnson & Johnson, Merck, and AbbVie [3] Performance Analysis - FHLC has shown strong short-term performance, gaining 5.3% in the last month and 17.9% over the past year, outperforming the S&P 500 [4] - However, over five years, FHLC returned 42.6%, significantly lagging behind the S&P 500's 84.5% return, with a widening gap over ten years (154% vs. 235%) [4] Sector Challenges - The underperformance of FHLC reflects broader challenges in the healthcare sector, including drug pricing pressures and slower innovation cycles outside oncology and rare diseases [5] - Recent momentum may indicate potential sector rotation, but investing after outperformance carries inherent risks [5] Policy and Income Considerations - Investors face political and regulatory uncertainties, with an 87.5% probability that enhanced ACA premium tax credits will expire by January 2026, impacting health insurers like UnitedHealth [7] - FHLC's yield of 1.33% is considered modest compared to other market alternatives, with dividend growth of approximately 4.6% annually over five years, barely keeping pace with inflation [8] Suitability for Investors - Growth-focused investors seeking maximum capital appreciation may find FHLC unsuitable due to its long-term underperformance [9] - Retirees prioritizing income generation may also find better yield opportunities in other sectors without sacrificing stability [9] Alternative Options - Vanguard Health Care ETF (VHT) is presented as an alternative, with a slightly higher expense ratio of 0.09%, larger asset base of $20.4 billion, and a higher dividend yield of 1.38% [11] - VHT's longer track record since 2004 and superior liquidity may provide additional confidence for long-term investors [11] Tactical Allocation - FHLC may serve as a tactical allocation for investors seeking low-cost exposure to the healthcare sector, but concentration risk and historical underperformance necessitate careful position sizing [12]

Economic Indicators - US nonfarm payrolls for December are expected to increase by +70,000, with the unemployment rate anticipated to decrease by -0.1% to 4.5% [1] - Average hourly earnings for December are projected to rise by 0.3% month-over-month and 3.6% year-over-year [1] - October housing starts are expected to increase by 1.8% month-over-month to 1.33 million, while building permits are anticipated to rise by 1.5% month-over-month to 1.35 million [1] - The University of Michigan's January consumer sentiment index is expected to climb by +0.6 points to 53.5 [1] Trade and Productivity - The US trade deficit for October unexpectedly shrank to -$29.4 billion, significantly better than the expected widening to -$58.7 billion, marking the smallest deficit in 16 years [2] - Q3 nonfarm productivity rose by +4.9%, close to expectations of +5.0%, representing the largest increase in two years [2] - Q3 unit labor costs fell by -1.9%, exceeding expectations of a -0.1% decline [2] Labor Market - December Challenger job cuts fell by -8.3% year-over-year to 35,553, the lowest level in 17 months, indicating a supportive factor for the US labor market [3] - Weekly initial unemployment claims rose by +8,000 to 208,000, which is lower than the expected 212,000, suggesting a stronger labor market [2] Stock Market Movements - Defense stocks rallied sharply after President Trump indicated plans to increase military spending to $1.5 trillion next year, with notable gains in companies like AeroVironment and Huntington Ingalls Industries [4][15] - Energy producers saw gains as WTI crude oil rose by more than +3%, leading to significant increases in stocks like APA Corp and Diamondback Energy [16] - Chipmakers and data storage companies experienced declines, with Seagate Technology and Western Digital leading the losses [13][14] Interest Rates and Bonds - The 10-year T-note yield rose by +3 bp to 4.18%, influenced by positive labor market indicators and a significant amount of corporate bond sales totaling $88.4 billion for the week [5][9] - European government bond yields were mixed, with the 10-year German bund yield rising by +5.1 bp to 2.863% [10]

Core Viewpoint - The 2025 stock market rally was concentrated in mega-cap technology companies, but a broader rally is anticipated in 2026 as earnings growth expands to other sectors, prompting investors to seek balanced exposure across all market sectors [1]. Group 1: Sector Allocation and Strategy - The ALPS Equal Sector Weight ETF (EQL) allocates approximately 9% to each of the 11 S&P 500 sectors, significantly overweighting underperforming sectors that may benefit from market broadening [2]. - EQL automatically rebalances quarterly to maintain equal sector weights, providing a diversified investment approach [2]. - Energy and utilities, which represented only 2.89% and 2.35% of the S&P 500 respectively at year-end, receive approximately 9% allocations each in EQL, more than triple their weights in the cap-weighted benchmark [4]. Group 2: Growth Drivers and Market Trends - Surging electricity demand from artificial intelligence data centers is creating new growth drivers for the energy and utilities sectors, shifting the investment case beyond traditional defensive characteristics [5]. - The infrastructure sectors may benefit from the multi-year buildout required to support AI computing needs, with EQL providing substantially higher exposure to these sectors [6]. - Real estate, another underweighted sector in the S&P 500 at just 1.94%, receives approximately 9% allocation in EQL, positioning investors to benefit from potential property valuation support in a lower-rate environment [7]. Group 3: Performance and Investor Interest - The equal sector strategy has gained traction, with EQL attracting $22.08 million in net flows over the past month and $125.53 million over the past year, now holding over $589 million in assets [8]. - EQL posted a 13.53% gain over one year, 15.63% annualized over three years, and 12.78% annualized over five years, with a 0.27% expense ratio after fee waivers through March 2026 [9]. Group 4: Market Rotation Insights - December's market action indicated a potential sector rotation, with leadership broadening beyond technology as financials, materials, and industrials led the S&P 500, benefiting strategies with balanced sector exposure [10].

Core Insights - Defensive consumer staples stocks are becoming increasingly popular among investors during market volatility, as they provide essential goods regardless of economic conditions [2] - Walmart Inc. has emerged as a strong performer in the defensive sector, with its stock up 23.8%, although it is trading at a premium valuation of approximately 39 times earnings [3] - Costco Wholesale Corp. has seen a decline of 5.5% in its stock price, currently trading at 46 times earnings, which is a discount compared to its historical average [3] - Procter & Gamble is down over 14% due to competition from private label brands, but it is trading at around 21 times earnings, indicating a potentially attractive valuation [4] - The outlook for these defensive stocks varies depending on economic conditions, with analysts divided on whether the U.S. economy will experience growth, a slowdown, or stagnation [4] Company Summaries - Walmart has been the standout performer in the defensive category, but investors are paying a premium for its consistent performance [6] - Costco's recent stock pullback does not necessarily make it a bargain, as it is still priced for strong execution despite a challenging year [6] - Procter & Gamble appears to be reasonably valued, but ongoing pressure from private-label brands may limit its growth potential if the economy slows [6]

Market Overview - Futures are trading lower as the final trading week of 2025 begins, with major indices finishing modestly lower on Friday. The S&P 500 reached a new all-time high before closing at 6,929, down 0.03% [2] - The Dow Jones Industrial Average closed at 48,710, down 0.04%, and the Nasdaq finished at 21,593, down 0.09% [2] Treasury Bonds - Yields were flat to moderately lower on Friday, influenced by portfolio shuffling and light profit-taking. Strong GDP data has led to a more hawkish stance among some Federal Reserve officials, challenging expectations for aggressive interest rate cuts next year [3] - Current market pricing implies up to two rate cuts in 2026, while the median policymaker projection indicates only one. Goldman Sachs expects two more 25-basis-point reductions in 2026 [3] - The 30-year long bond closed at 4.82%, and the benchmark 10-year note was last seen at 4.13% [3] Oil and Gas - Major oil benchmarks closed lower on Friday, with Brent Crude at $60.87, down 2.2%, and West Texas Intermediate at $56.94, also down 2.2%. Concerns about a global supply glut outweighed geopolitical supply risks [4] - Natural Gas surged 3.5% to close at $4.39, attributed to cold weather, high LNG exports, and tighter storage levels, which are expected to drive winter demand upward [4] Sector Trends - The S&P 500 is on track for its third consecutive year of double-digit returns, barring any market meltdown this week. The AI/Datacenter trade remains a focal point as 2026 approaches, with expectations for more sector rotation next year [5]

Core Insights - Sector rotation has been challenging in the past quarter, but the company successfully achieved profits through multiple attempts in biotech stocks [1] Group 1 - The company engaged in multiple attempts within the biotech sector [1] - Despite difficulties in sector rotation, the company managed to gain profits [1]

Market Overview - The Dow is up by 0.5% today, but remains in the red for the week [1] - The NASDAQ has increased by over 1% today, turning positive for the week, while the S&P 500 is up just under 1% [2] - The bond market shows a slight increase in yields, with the 10-year Treasury yield up by 3 basis points today [3] Sector Performance - Technology has been a strong performer this week, with large-cap tech (XLK) up by 2% [4] - Consumer discretionary, led by Tesla and Amazon, is up by 1.3%, while energy has seen a decline of about 3% [5] - Notable stock movements include Nvidia up by 3.74% and Goldman Sachs up by 2% [6] Economic Outlook - Markets are reacting to cooler inflation data and a strong growth backdrop anticipated for 2026 [7] - Investors are focusing on potential rate cuts, earnings, and sector rotation as they prepare for the new year [7] - The Federal Reserve has cut rates by 175 basis points from the highs, indicating a move closer to a neutral rate [13] Fiscal Stimulus and Growth - Significant fiscal stimulus is expected to impact the economy in 2026, including corporate and personal tax changes [16] - The potential for increased capital expenditures (capex) is anticipated due to new corporate stimulus measures [16] AI and Technology Sector - The AI theme remains volatile, with a shift from broad market exposure to more selective stock picking expected in 2026 [18] - The MAG 7 tech stocks have shown mixed performance, with some like Alphabet and Nvidia performing well, while others like Microsoft and Meta have lagged [19] Small Cap Stocks - Small caps have recently rebounded, but there are concerns about sustainability given past performance trends [23] - The current small-cap index composition differs significantly from historical norms, leading to skepticism about future growth [25] Retail Sector Insights - Rivian's stock has been upgraded by Wedbush, citing 2026 as a pivotal year for the company [27] - KB Home reported fourth-quarter earnings that missed estimates, indicating ongoing challenges in the housing market [29] - Nike's second-quarter results reflect a turbulent year for retailers, with uneven performance across the sector [31] Honeywell's Performance - Honeywell's stock has underperformed compared to the broader industrial market, largely due to limited exposure to AI and data center growth [90] - The company is expected to benefit from the spin-off of its aerospace business, which could enhance its market position [92] EV Market Outlook - The EV market is facing headwinds, including the expiration of tax credits, but long-term demand is expected to remain strong [74] - ChargePoint's CEO emphasizes the importance of innovation and product development to drive growth in the EV charging sector [78] - The commercial and fleet markets for EVs are anticipated to grow as businesses seek lower total cost of ownership [86]