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Welcome to CNBC. com. I'm Frank Colin, anchor worldwide exchange.We are looking at the ETF action this week. Year-to-date net ETF inflows. They've topped 645 billion dollars according to the latest data from Vify.Join me now to discuss some of the action in the ETF market. I'm joined by Phil McInness at Vandis Investors by American Century Investments. He is their chief investment strategist.Phil, thanks so much for being here with us. >> Thanks, Frank. Pleasure to be here.Um, I I just want to start off jus ...

We want to move on to the ETF market. We're tracking ETF flows for the year that are now over $645 billion. We're also tracking the moves above and below the 30-day moving averages for the popular index funds, the spy and the triple Q's.So this week, we saw volumes trend below the 30-day moving average as the indexes hit record highs, the EyesShares US equity factor rotation ETF, ticker DYNF. That's all the top inflows this week. So take a look.This is an ETF that's actively managed, combining large cap, sm ...

Our next guest, this all sounds great, but our next guest warns that stocks just hit a line of death that was last reached at the peak of the dot bubble. Although even he says there's still plenty of reasons to be bullish. Let's bring in Bill Smei, the CIO of Smeed Capital Management.How's that for an intro, Bill. Welcome. Oh, glad to be here.Look forward to talking with you. Line of death. What line is that.Well, it just showed that the inflation adjusted PE ratio was was a match with the dot. But we've we ...

ETF Market Inflows and Trends - Year-to-date net inflows into ETFs reach $623 billion, on track for another trillion-dollar year [2] - The industry is potentially heading towards $1.3 trillion in flows for the entire year, driven by low-cost and active strategies [3] - Stronger sector flows observed in the past three months compared to the prior three months, indicating tactical adjustments and improving sentiment [3][4] Communication Services ETFs (XLC) - Increased inflows driven by price and fundamental momentum, with the sector outperforming the broader market [4] - Communication services is the only sector with increased earnings estimates over the last three months, largely due to AI [5] - Beneficiary of the "one big beautiful bill act" due to high R&D expenditure that can be expensed at a higher rate, boosting cash flow [5] - Considered a safe haven due to its service-oriented nature, making it less impacted by tariffs [5] Small Cap ETFs - July saw $2 billion of outflows, contributing to net outflows year-to-date, reflecting a less robust economic outlook [6] - Small caps face challenges due to below-trend growth expected in 2025 and 2026, high interest costs, and significant debt financing [6][7] - Small caps have experienced negative earnings growth over the last three years, contrasting with the sizable positive earnings growth of large caps [7] - Sentiment favors large caps with AI tech benefits, higher cash flow, and less debt service, making them less tied to the economic cycle [8] ETF Recommendations for Current Market - Communication Services ETF (XLC) is recommended due to fundamental momentum, high earnings expectations, cash flow, earnings revisions, and limited tariff exposure [11][12] - Aerospace and Defense ETF (XR) is suggested due to macro momentum from increased defense spending driven by geopolitical conflicts [12][13]

Welcome back. NASDAQ hitting a record high today. Nvidia becoming the first company ever to reach $4 trillion in market cap.Question now, should you continue to lean into that trade or diversify elsewhere. Joined now by Elizabeth Burton, chief investment strategist for Goldman Sachs Asset Management. Welcome back.It's good to see you. Good to see you. You're on the diversification train, right.Don't don't just lean into tech or or large cap. We're always on the diversification train. Yeah, but I mean, you k ...

Let's talk markets now with Joe Amato, president and chief investment officer at Newberger Burman, which has $515 billion dollars in assets under management. Joe, great to have you with us. Morning.Good to be here. Obviously, you know, second half there, you you take a look at what you should be doing with your own portfolio and a lot of people are wondering and and what happened yesterday's market was really interesting because it was like July 1 hit and there was just a rotation out of the higher multiple ...

Market Overview & Small Cap Performance - Russell 2000 is the only index negative year-to-date [1] - Small caps have been struggling fundamentally due to an earnings recession [3][4] - Consensus expects a significant growth pickup in the second half of the year, but estimate revisions and guidance need to turn around for confirmation [4] Interest Rate Sensitivity & Fed Policy - Small caps are increasingly sensitive to rate risk, showing a record negative correlation with longer-term treasuries [6][7] - Bank of America economists are not expecting the Fed to cut rates this year, while the market is pricing in several Fed cuts, posing a near-term risk [5] - Higher rates for longer pose a bigger risk for small caps due to high leverage and short-term/floating rate debt [7][8] Potential Positives & Long-Term Outlook - Potential positives for small caps include the US-China deal, growth-positive provisions in the bill, and a slightly more positive ISM [2][3] - Long-term, there is potential for outperformance of small caps given valuations and multi-year themes like reshoring, peak globalization, and a capex cycle in the US [8] - Near-term selectivity is crucial, with better risk-reward in midcaps; focus on areas with better revisions, stronger margins, and avoid levered companies [9][10]

Let's talk a little bit more on markets right now. Joining us is Peter Krauss. He's the chairman and CEO of Aperture Investors.And Peter, we're coming off a really strong quarter, up better than 10% for the S&P 500, the best quarter since 2023. Um there are questions about whether it can last. A lot of good things that are happening right now.Um but we saw what happened in April with tariffs being put in place that were much higher than anticipated. We're against another deadline now, July 8th and 9th, when ...