Market Overview - September is historically the worst month for U.S. stocks, with the S&P 500 retreating 56% of the time by an average of 1.17% since 1927 [1] - This September may differ due to a high probability of a Fed rate cut, which could support market strength despite seasonal weaknesses [2] Fed Rate Cut Probability - There is currently an 86.9% probability of a 25-basis point rate cut by the Fed in September, which could lead to a weaker dollar, falling bond yields, and rising stock prices [4] Earnings and Economic Outlook - The overall earnings picture remains stable as the Q2 earnings season concludes, with favorable earnings revisions trends noted for Q3 2025 and the last quarter of the year [5] - Despite concerns about a bubble in the AI sector, the boom continues, providing a positive backdrop for investors entering September [5] ETFs in Focus - Financial Select Sector SPDR ETF (XLF) is highlighted as a strong buy, with modest increases in estimates for several sectors including Finance, Tech, and Energy since the start of Q3 [7] - ALPS OShares U.S. Quality Dividend ETF (OUSA) is ranked as a buy, focusing on large and mid-cap dividend-paying issuers, offering safety in economic downturns [9] - VanEck Retail ETF (RTH) is rated as hold, benefiting from decent inflation levels and retail sales momentum, particularly during back-to-school shopping [10] - VanEck Gold Miners ETF (GDX) has seen gold prices rise over 4% in the past month, driven by Fed rate cut hopes and increased central bank demand [11][12] - First Trust NASDAQ Cybersecurity ETF (CIBR) is positioned well due to the shift towards cloud computing and heightened demand for cybersecurity solutions amid geopolitical tensions [13]

Group 1 - The SPDR S&P Aerospace & Defense ETF (NYSEARCA: XAR) provides exposure to 38 U.S. Aerospace & Defense stocks, following a modified equal weighting scheme to address diversification issues common to its peers [1] - The ETF is part of a comprehensive database that tracks the performance and fundamentals of nearly 1,000 U.S. Equity ETFs [1]

Core Viewpoint - The iShares Expanded Tech Sector ETF (IGM) offers broad exposure to the Technology - Broad segment of the equity market, appealing to both institutional and retail investors due to its low cost and transparency [1][2]. Group 1: ETF Overview - IGM is a passively managed ETF launched on March 13, 2001, with assets exceeding $8.63 billion, making it one of the largest ETFs in its category [1][3]. - The ETF aims to match the performance of the S&P North American Technology Sector Index, which includes North American equities in technology and select equities from communication services and consumer discretionary sectors [3][4]. Group 2: Costs and Performance - The annual operating expenses for IGM are 0.39%, positioning it as a cost-effective option in the ETF space, with a 12-month trailing dividend yield of 0.22% [5]. - The ETF has gained approximately 14.96% year-to-date and 26.17% over the past year, with a trading range between $79.8 and $119.02 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - IGM has a significant allocation of about 76.3% in the Information Technology sector, followed by Telecom [6]. - Nvidia Corp (NVDA) constitutes about 9.8% of total assets, with the top 10 holdings accounting for approximately 58.28% of total assets under management [7]. Group 4: Risk and Alternatives - The ETF has a beta of 1.27 and a standard deviation of 24.75% over the trailing three-year period, indicating a medium risk profile [8]. - IGM holds a Zacks ETF Rank of 2 (Buy), suggesting it is a favorable option for investors seeking exposure to the Technology ETFs segment [9].

Core Insights - The article emphasizes the importance of creating engaging and educational financial content for various audiences, particularly focusing on thematic investing and market events [1] Group 1: Content Creation - The company specializes in producing written content in multiple formats, including articles, blogs, and social media, aimed at financial advisors and investment firms [1] - There is a strong focus on making financial data accessible and relevant, utilizing empirical data to support narratives [1] - The use of charts and visual tools is highlighted as a method to simplify complex financial information and engage readers [1] Group 2: Market Analysis - The company expresses enthusiasm for analyzing various asset classes, including stocks, bonds, commodities, currencies, and cryptocurrencies [1] - There is an emphasis on understanding macro drivers that influence market conditions and investment opportunities [1] - The content aims to relate to everyday investors, providing insights that are both educational and compelling [1]

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2] - The historical context of the California gold rush illustrates the potential for wealth generation through supply provision, relevant to current investment strategies in income-generating assets [3]

Core Insights - The Vanguard S&P Mid-Cap 400 ETF (IVOO) is designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, launched on September 9, 2010, with assets over $2.78 billion [1] - Mid cap companies, with market capitalizations between $2 billion and $10 billion, offer a balance of growth potential and stability, making them attractive for investors [2] - The ETF has an annual operating expense ratio of 0.07% and a 12-month trailing dividend yield of 1.33%, positioning it as a cost-effective investment option [3] Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 23.8% of the portfolio, followed by Financials and Consumer Discretionary [4] - Interactive Brokers Group Inc (IBKR) is the largest individual holding at approximately 0.96% of total assets, with the top 10 holdings accounting for about 5.36% of total assets under management [5] Performance Metrics - IVOO aims to match the performance of the S&P MidCap 400 Index, which consists of 400 domestic common stocks, and has increased by roughly 5.24% year-to-date and 7.54% over the past year as of September 1, 2025 [6] - The ETF has a beta of 1.05 and a standard deviation of 19.41% over the trailing three-year period, indicating a medium risk profile [7] Alternatives and Market Position - IVOO holds a Zacks ETF Rank of 2 (Buy), indicating strong expected performance based on various factors [8] - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) with $87.41 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $99.70 billion in assets and an expense ratio of 0.05% [9] Investment Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]

Core Insights - The ProShares S&P 500 Ex-Technology ETF (SPXT) is designed to provide broad exposure to the Large Cap Blend segment of the US equity market, launched on September 22, 2015, with assets over $214.90 million [1] - Large cap companies typically have a market capitalization above $10 billion, offering stability and more reliable cash flows compared to mid and small cap companies [2] - The ETF has an annual operating expense ratio of 0.09%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 1.24% [3] Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 20.9% of the portfolio, followed by Consumer Discretionary and Telecom [4] - Amazon.com Inc (AMZN) represents approximately 5.89% of total assets, with the top 10 holdings accounting for about 26.96% of total assets under management [5] Performance Metrics - SPXT aims to match the performance of the S&P 500 Ex-Information Technology & Telecommunication Services Index, excluding companies in the information technology sector [6] - The ETF has gained roughly 8.88% year-to-date and 13.44% over the past year, with a trading range between $81.62 and $99.47 in the last 52 weeks [7] - With a beta of 0.91 and a standard deviation of 14.44% over the trailing three-year period, it is categorized as a medium risk investment [7] Alternatives and Market Position - SPXT holds a Zacks ETF Rank of 2 (Buy), indicating strong expected performance based on various factors [8] - Other comparable ETFs include the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO), with assets of $660.96 billion and $725.27 billion respectively, both having an expense ratio of 0.03% [9] Industry Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Market Overview - Investor confidence showed slight improvement following Powell's comments, leading to a minor increase in the S&P 500 index. However, concerns remain due to record U.S. debt levels and ongoing inflation risks [1][2] - The broad market index initially gained 3.7% in August but lost momentum, declining approximately 1.5% by August 21, before rebounding by about 1.7% as of August 27 [2] Inflation Concerns - Powell's remarks indicated a potential interest rate cut in September, but he also raised concerns about inflation, leading to investor anxiety regarding stagflation risks [3] - Consumer inflation expectations rose to 4.9% for the next 12 months in August, up from 4.5% the previous month, while long-term expectations increased to 3.9% from 3.4% [4] Market Volatility Factors - Rising U.S. debt levels and geopolitical instability contribute to market volatility, prompting a cautious investment approach [5] - The AI sector has driven recent market rallies, but concerns about an AI bubble have led investors to rotate out of major tech stocks [5][6] Investment Strategies - Increasing exposure to volatility ETFs may be beneficial for investors, especially during periods of market chaos, as these funds have historically provided short-term gains [7][8] - Investors with a long-term perspective may overlook short-term uncertainties, while those with a shorter horizon should be more cautious [7] ETFs for Volatility Exposure - iPath Series B S&P 500 VIX Short-Term Futures ETN has an asset base of $806.1 million and charges an annual fee of 0.89%. It has lost 11.48% over the past month and 8.47% over the past year [11][12] - ProShares VIX Short-Term Futures ETF has an asset base of $331.9 million, charges an annual fee of 0.85%, and has lost 11.56% over the past month and 9.82% over the past year [13][14] - ProShares VIX Mid-Term Futures ETF has an asset base of $39.1 million, charges an annual fee of 0.85%, and has lost 6.82% over the past three months but gained 16.40% over the past year [15][16]

Market Performance - Wall Street experienced a mixed performance last week, with a slump in the middle driven by fears of an AI bubble and doubts over AI investments' substitutability, followed by a strong finish due to Federal Reserve Chair Jerome Powell's hints at a possible September rate cut [1][2] - On August 22, 2025, Wall Street rallied sharply after Powell suggested interest rates could be lowered soon, indicating a shift in the economic outlook that may warrant a change in monetary policy [2][3] - Traders' expectations for a September rate cut rose significantly, with the probability increasing to 91.5% by Friday afternoon, compared to 70% earlier that day and 85% a week prior, leading to a drop in treasury yields and a rise in stock prices [4] Index Performance - The Dow Jones Industrial Average increased by 1.9% to a record high on August 22, 2025, while the S&P 500 rose by 1.5% and the Nasdaq Composite gained 1.9%. Overall, the S&P 500 gained 0.3% last week, the Dow Jones added over 1.5%, and the Nasdaq lost 0.6% [5] ETF Highlights - KraneShares SSE Star Market 50 Index ETF (KSTR) rose by 12.8% last week, focusing on the 50 largest companies on the SSE Science and Technology Innovation Board [7] - AdvisorShares Pure Cannabis ETF (YOLO) increased by 12.5%, benefiting from potential reclassification of marijuana by President Trump [8] - ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ) gained 11.3%, with Ethereum leading digital asset gains [9] - Global X MSCI China Consumer Discretionary ETF (CHIQ) rose by 6.4%, driven by steady performance in Chinese e-commerce stocks and significant gains in auto stocks like NIO, which surged by 29% [10] - VanEck ChiNext ETF (CNXT) increased by 5.1%, attracting attention due to a sustained recovery in Chinese stocks and capital inflows [12]