Core Viewpoint - The article highlights the uniqueness of thematic ETFs in Wall Street, particularly noting the absence of one that utilizes a sitting U.S. president as a marketing tool [1] Group 1 - Thematic ETFs have gained popularity on Wall Street, but none have leveraged a sitting U.S. president for promotion [1]

Core Insights - The VanEck Semiconductor ETF (SMH) tracks the MVIS® US Listed Semiconductor 25 Index, which includes 25 large-cap US companies that generate at least 50% of their revenues from the semiconductor industry [1] Group 1: ETF Overview - The VanEck Semiconductor ETF is designed to provide exposure to the semiconductor sector by tracking a specific index [1] Group 2: Company Focus - The ETF comprises large-cap companies that are significantly involved in the semiconductor market, highlighting the importance of this sector in the broader technology landscape [1]

ETF Market Trends - Thematic ETFs were popular until the "Magnificent 7" AI trade gained prominence [1] - Thematic ETFs might experience a resurgence in 2026 due to AI [1] - The discussion covers the variety of thematic ETFs and their impact on the ETF landscape [1] Future Outlook - The conversation includes identifying emerging ETF themes to monitor [1]

ETF Action founding partner Mike Akins says thematic ETFs could be headed for a comeback thanks to the explosive growth of AI. He digs into what's behind the revolution and why he thinks they could also replace sectors. Global X ETFS CEO Ryan O’Connor joins the conversation with CNBC's Dominic Chu. ...

Market Trends & Performance - S&P 500 futures are positive, expected to gain approximately 30 points, equivalent to about 04% [1] - NASDAQ has experienced eight consecutive positive Mondays [1] - The market is performing well, with November typically being a positive month; years with a 17% increase tend to see an additional 3-5% gain in November and December [3] - Equal weighted S&P underperformed market cap weighted S&P by approximately eight percentage points this year [5] Investment Opportunities & Strategies - Diversification into ETFs like XMAG or equal-weighted products is reasonable, especially with heavy exposure to the "Magnificent Seven" [7] - Significant investment opportunities exist in AI, AI infrastructure, and AI power spend, driven by substantial capital expenditure buildout, potentially in the trillions [7] - A McKenzie report indicates a need for a 165% increase in energy and AI infrastructure to support the buildouts of the "Magnificent Seven" companies [7] - Investors are actively seeking the next Nvidia in the AI power sector, with tangible opportunities emerging, such as Google raising debt for AI power and infrastructure [10][11] Emerging Technologies & Future Outlook - Quantum computing is positioned for long-term growth over the next 5-10 years, similar to AI in its early stages, requiring acceptance of choppiness and volatility [12] - Drones and AI are transforming warfare and information gathering [13]

Market Imbalance & Diversification - The technology sector holds an all-time high of approximately 35% weight within the S&P 500 index, while defensive sectors (staples, healthcare, energy, and utilities) are at an all-time low of just 19% [3] - Investors are seeking diversification beyond the S&P 500 index due to increasing concentration, exploring options like small caps (Russell 2000 IWM ETF) and international investments for value [6][9] ETF Trends & Strategies - There's significant interest in income-generating products, particularly those utilizing derivatives, to meet the needs of investors, especially retirees [11][13] - Innovation in income strategies involves moving beyond traditional covered calls to more sophisticated approaches like selling call spreads and active management to unlock more upside [14][15] - Thematic ETFs, particularly those related to AI, are experiencing a resurgence, attracting attention and growth in the ETF market [19][20] Future Outlook - The leveraged ETF space (3x and 5x products) is gaining attention, raising questions about its potential impact on financial markets [16][17] - Healthcare sector is considered an interesting area for potential investment, offering both growth and value opportunities [17][18]

Core Insights - The current market is experiencing significant imbalances, particularly within the S&P 500, with the technology sector reaching a record weight of approximately 35%, while defensive sectors are at a historic low of 19% [3][4]. ETF Market Dynamics - There is a notable shift towards momentum investing, especially in technology and communication services, which may lead to a broadening out trade [4][5]. - Small-cap stocks, represented by the Russell 2000 ETF, have seen increased activity since April, indicating a potential shift in investor focus away from large-cap technology stocks [6]. Investment Strategies - Investors are seeking diversification beyond traditional index ETFs due to increased concentration in indices, leading to heightened interest in alternative investment strategies [9]. - There is a growing demand for income-generating products, particularly among retirees, with innovative strategies emerging in the derivative space to meet these needs [11][14]. Trends in ETF Offerings - The gold trade is gaining traction, with significant inflows into gold-related income products [10]. - Advanced income strategies, such as selling call spreads instead of traditional covered calls, are becoming more popular, allowing for greater upside potential [15]. Future Outlook - The leverage space in ETFs is expected to attract attention, with products aiming for 3x and 5x returns being developed [16]. - The healthcare sector is viewed as a potential area for growth, especially given the recent outflows from this space [17]. - Thematic ETFs, particularly those related to AI, are anticipated to regain popularity, reflecting a resurgence in interest in innovative investment themes [19][20].

Core Insights - Thematic ETFs have gained traction, particularly the VanEck Video Gaming and eSports ETF (ESPO), which has seen significant growth in assets under management (AUM) this year [1][3][5] Group 1: ETF Overview - The VanEck Video Gaming and eSports ETF (ESPO) launched prior to the 2021 ETF rule and charges 56 basis points, tracking the MVIS Global Video Gaming & eSports index [2] - The index consists of fewer than 30 companies, focusing on subsectors like gaming hardware and software, providing concentrated exposure [2] Group 2: Performance Metrics - ESPO's AUM has increased from approximately $279 million to $496 million year-to-date, with about $70 million in net inflows, driven by price appreciation [3] - The ETF has delivered a year-to-date return of 45.5%, outperforming its category and segment averages [4] Group 3: Notable Holdings - AppLovin Corp (APP), the largest holding in ESPO, has achieved a 100% return year-to-date, with a return on equity of 259% and a year-over-year quarterly revenue growth of 77% [4] - Other significant holdings include Nintendo and Unity Software, enhancing the ETF's focus on gaming software and development [4]

ETF Market Trends - The ETF market is showing a stronger division between institutional and individual investors, raising concerns [1] - Approximately 64% of the entire ETF market can be traced back to 13F filings, indicating institutional ownership [2] - Single stock ETFs have over $30 billion, almost $40 billion in assets, with sub 10% institutional ownership [3] - Niche thematic ETFs, like those popular during 2020-2021, often have low institutional ownership, driven by retail investors [4][5] - Flows into niche strategies, especially in thematic and innovative spaces, are showing signs of approaching 2020-2021 levels [5] Single Stock ETFs and Thematic ETFs - Single stock ETFs now amount to $40 billion, including leveraged products and covered call/synthetic income strategies [6] - Synthetic calls on single stocks are almost entirely (99%) owned by retail investors, with no institutional allocation [7] - While thematic ETFs can be great portfolio allocation tools, significant inflows into these products can be a contrarian signal of market overheating [8][9] Gold ETFs - Traditionally, institutional and retail flows into gold ETFs have been about a 50/50 split [10] - Institutions are increasingly looking at strategically allocating 3% to 5% of portfolios to gold as a cost-effective hedge against drawdowns [11][12] - Gold ETFs have seen approximately $40 billion flow in worldwide through the first half of the year, with an additional $4 billion for July and August [12] - Central banks have shown record or near-record flows into gold over the last three years, continuing to drive gold performance [14][15]

Industry Overview - The telecom industry has experienced a positive year, with a rise of approximately 13% and 30% on a yearly basis, although this performance remains below that of the broader S&P 500 [1] Performance Analysis - Over a 5-year period, the telecom industry's returns have been analyzed, indicating a need for further evaluation against historical performance metrics [1]