BACK TO THE HALFTIME REPORT. I'M DOMINIC SHU WITH YOUR ETF EDGE. WE ARE LIVE IN, LAS VEGAS FOR THE VETTA PHI EXCHANGE CONFERENCE WHERE A LOT OF ETF FOLKS ARE TALKING ABOUT WHAT'S GOING ON IN THE WE ARE JOINED RIGHT NOW BY VERY MUCH FOR BEING HERE WITH US.GOOD MORNING. THANKS FOR HAVING ME. LET'S TALK A LITTLE BIT ABOUT WHAT YOU'VE SEEN SO FAR IN TERMS OF THE TYPES OF CONVERSATIONS ABOUT THE INVESTING ENVIRONMENT.WHAT STANDS OUT TO YOU. YEAH, SURE. I MEAN IT'S BEEN AN EXCITING YEAR FOR ETFS, RIGHT.WE'RE BUMP ...

Core Insights - Thematic ETFs and active fixed income are gaining renewed interest as investors seek alternatives to the dominance of the Magnificent Seven stocks [1][2] Thematic ETFs - Advisors are reevaluating portfolios to address gaps in exposure to companies leading significant market themes such as electrification and energy transition [2][3] - The ALPS Electrification Infrastructure ETF (ELFY) adopts a "picks and shovels" approach, focusing on downstream infrastructure rather than AI tech giants, investing in pipeline companies, utilities, and industrial firms benefiting from rising electricity demand [4] - Utilities and energy sectors represent a small portion of traditional portfolios, with utilities at 2% and energy at 3% of the S&P 500, despite their critical roles in electricity demand growth [5] Active Management in Fixed Income - The ALPS Smith Core Plus Bond ETF (SMTH) has surpassed $2 billion in assets in under two years, as investors shift from cash equivalents to longer-duration strategies amid expected rate cuts [6] - Active fixed income managers have consistently outperformed benchmarks, unlike large-cap equity counterparts, as the aggregate bond index serves primarily as a measurement tool rather than an investable option [7] Market Concentration and Diversification Strategies - Looking towards 2026, there are concerns about the market's concentration around the Magnificent Seven, which collectively account for over 30% of the S&P 500 [8] - Suggested diversification strategies include international exposure, small- and mid-cap allocations, value-oriented approaches, and quality strategies to mitigate concentration risk [9]

Core Viewpoint - Tuttle Capital Management has launched the Tuttle Capital Meme Stock Income Blast ETF in response to increasing demand for income-driven investment products as investors seek alternatives to traditional yields [1] Company Insights - Matt Tuttle, CEO & CIO of Tuttle Capital, highlighted that there is a growing interest in options-based income strategies, thematic ETFs, and unconventional investment ideas [1] - The launch of the new ETF reflects a market that is eager for differentiated exposure, indicating a shift in investor preferences [1] Industry Trends - There is a notable surge in demand for income-driven products, suggesting a broader trend in the investment landscape where traditional yield sources are being reconsidered [1] - The conversation around these developments took place on "Bloomberg ETF IQ," indicating the relevance and interest in ETF innovations within the financial media [1]

Core Insights - Thematic exchange-traded funds (ETFs) are experiencing a resurgence in 2025, particularly in niche subsectors like drone technology, which presents long-term investment opportunities [1] - The REX Drone ETF (DRNZ) is positioned to capture the growth potential of the drone industry, which is projected to exceed $163 billion by 2030 [6] Group 1: Investment Case for Drone Technology - A significant portion of webinar attendees (almost 50%) are unfamiliar with the drone industry as a viable investment opportunity, indicating a need for education [3] - The drone industry has evolved from military applications to commercial uses since the early 2000s, with advancements making drones "smaller, cheaper, and easier to use" [5] - REX Shares aims to create a rules-based, indexed fund that encompasses the entire drone market, rather than focusing solely on military applications [7][8] Group 2: Structure and Holdings of DRNZ - DRNZ is designed to provide pure-play exposure to the drone industry, with 80% of the fund allocated to companies generating at least 50% of their revenue from drone-related activities [11] - The fund also includes diversified companies that derive at least 20% of their revenue from drones, with a cap of 5% per constituent [11] - Notable holdings in DRNZ include companies like Draganfly, AeroVironment, EHang Holdings, and Droneshield, showcasing global diversification [17] Group 3: Portfolio Integration - Thematic funds like DRNZ typically occupy a satellite allocation in investment portfolios, complementing traditional growth exposure [12] - Advisors often allocate 3% to 5% of client portfolios to thematic ETFs, with DRNZ providing a diversified alternative to single-stock holdings in the drone sector [13][14] - DRNZ offers disciplined, rules-based access to a niche market, aligning with REX Shares' philosophy of providing unique ETF products [15]

Group 1 - Thematic exchange-traded funds (ETFs) are experiencing a resurgence, with the Procure Space ETF (UFO) showing significant growth, currently managing over $240 million in assets [1] - Thematic funds serve as satellite allocations in investment portfolios, complementing traditional growth exposure and catering to investor interests, with a noted increase in demand for technology-focused thematic ETFs [2] - UFO aims to track the S-Network Space Index, which includes companies involved in the space economy, such as SiriusXM Holdings and Garmin, highlighting the diverse applications of space technology [3] Group 2 - UFO had a remarkable performance in 2025, gaining nearly 70%, and outperformed other diversified thematic ETFs, indicating the potential for passive funds in a market driven by active demand [4] - The growing interest in thematic ETFs and the expanding space industry suggest a promising outlook for UFO in 2026, making it a fund to watch for investors [5]

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]