Top 10 Creations (All ETFs) Top 10 Redemptions (All ETFs) ETF Daily Flows By Asset Class   Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 191.28 115,814.31 0.17% Asset Allocation 91.76 34,823.80 0.26% Commodities E T Fs -377.88 373,616.94 -0.10% Currency 549.62 124,076.43 0.44% International Equity 2,989.00 2,454,839.51 0.12% International Fixed Income 281.22 388,911.29 0.07% Inverse -753.21 12,704.78 -5.93% Leveraged 664 ...

We are not even one full month into the New Year, and already small-cap stocks have delivered gains of nearly 8%. Small caps have been one of the top-performing sectors, and midcaps are a close second with gainsLong-time stock market investor focused on strategic buying opportunities with dividend and value stocks. This investment strategy has resulted in a near 5 star rating on Tipranks.com and over 9,000 followers on Seeking Alpha. Follow me on Twitter for my latest trading ideas: @Hawkinvest1Analyst’s Di ...

Market Overview - The S&P 500 is projected to end 2025 with solid double-digit growth, currently up 18% year to date and 1.7% month to date, indicating strong year-end momentum [1] - The ongoing Santa Claus rally is raising expectations for continued strength into early 2026, supported by anticipated interest rate cuts from the Federal Reserve [2] Analyst Projections - Wall Street strategists expect the S&P 500 rally to extend into 2026, with JPMorgan Chase and HSBC projecting the index at 7,500 by year-end, while Morgan Stanley and Deutsche Bank are more optimistic with targets of 7,800 and 8,000, respectively, indicating an upside of over 12% from current levels [3] - UBS forecasts the S&P 500 to end 2026 at 7,700, with tax incentives and the AI boom identified as catalysts for growth [4] Retail Investor Influence - Investor confidence is returning, with individual investors expected to play a significant role in the market rally anticipated for 2026, as retail inflows into U.S. stocks reach record levels in 2025 [5] - Cash inflows from retail investors have risen 53% from $197 billion last year, exceeding the $270 billion peak of 2021, with retail trades comprising 20-25% of market activity in 2025 and hitting a record 35% in April [6] Investment Strategies - Long-term investors are advised to stay invested rather than react to short-term volatility, as several top banks forecast the S&P 500 to reach around 7,700 by the end of next year [8] - Adopting passive, long-term strategies can help create momentum, support wealth accumulation, and minimize emotional decision-making [9] ETF Recommendations - Suggested ETFs for a bullish economic outlook include Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV), and State Street SPDR Portfolio S&P 500 ETF (SPYM) [12] - Growth ETFs such as Vanguard Growth ETF (VUG), iShares Russell 1000 Growth ETF (IWF), and iShares S&P 500 Growth ETF (IVW) are recommended for exposure to high growth potential stocks [13] - Equal-weighted ETFs like Invesco S&P 500 Equal Weight ETF (RSP) and ALPS Equal Sector Weight ETF (EQL) are suitable for investors seeking balanced portfolios with lower risk [15] - Small-cap ETFs, including iShares Core S&P Small-Cap ETF (IJR) and Vanguard Small Cap ETF (VB), are expected to perform well following rate cuts by the Fed [16]

Core Insights - The global ETF industry is valued at $19 trillion, with significant market movements as investors prepare for a delayed U.S. jobs report [1] - There is a notable trend of inflows into ETFs, with specific funds like VOO and IWM seeing substantial interest, indicating a potential shift towards small-cap investments [2][3] - Canada ranks fourth in ETF flow rates, with inflows just over $100 billion, while the U.K. leads outside the U.S. [4][5] ETF Market Trends - The ETF market has experienced three consecutive years of solid returns, with expectations for continued growth in launches and inflows [6][7] - The U.S. has seen record highs in ETF launches, trading volume, and flows in 2025, suggesting a robust market environment [7][8] - There is a concern about potential bottlenecks in the market due to the static number of market makers compared to the increasing number of ETFs [13][16] Active vs. Passive Management - The conversation around active versus passive management is evolving, with a focus on redefining what constitutes active management within the ETF space [17][18] - There is a growing demand for alternative strategies within ETFs, as traditional passive strategies may not meet the diversification needs of investors [40][41] New ETF Launches - BlackRock's newly launched ETF aims to combine alternative investing strategies with the convenience of an ETF structure, targeting long-short and market-neutral strategies [35][36] - The ETF market is seeing innovations, such as the introduction of hedge fund-like ETFs, which aim to provide low volatility and higher Sharpe ratios [32][33] Market Dynamics - The ETF industry is characterized by competitive margins, with market makers needing to establish economic relationships with asset managers to ensure liquidity [14][16] - The challenge for new entrants in the ETF space is to demonstrate true alpha and differentiate from existing products, as the market becomes increasingly crowded [43][45]

Market Overview - The current market is characterized as "sloppy," with mixed indices indicating potential consolidation or rollover [2] - Cautious stock selection is emphasized, focusing on avoiding negative market events [3] Growth Stocks - Growth stocks are viewed as a double-edged sword; their collapse would negatively impact the market, yet a rotation into other sectors could be healthy [4][5] - The technology sector, particularly represented by the ARK ETF, is under pressure due to concerns around tech valuations [5] Economic Indicators - The gold-silver ratio serves as an inflationary indicator, with recent highs in silver and its relationship with US dollar levels noted [7] - Predictions suggest silver could reach $75 to $85 per ounce, while gold could rise to $4,700 to $5,000 if silver experiences significant movement [8] - Energy and commodity prices are highlighted as traditional inflation measures, with spikes in sugar and cattle prices serving as potential inflation signals [8] Consumer Behavior - A shift in consumer behavior due to weight loss drugs may drive growth in associated stocks and alter spending patterns [11] Investment Opportunities - Investment opportunities are identified in sectors where AI is driving innovation, such as biotech and digital content [13] - The importance of taking profits as part of trade and risk management is emphasized, with a focus on adaptability to market cycles while maintaining optimism about long-term economic evolution driven by innovation [14]

Core Insights - The article provides a detailed overview of net flows across various asset classes in the ETF market, highlighting significant trends in investor behavior and asset allocation [1] Summary by Category Net Flows - Total net flows across all ETFs amounted to $3,273.93 million, indicating a slight increase of 0.02% in assets under management (AUM) [1] - The US Fixed Income category saw the highest net inflow of $1,778.67 million, representing a 0.10% increase in AUM [1] - International Equity also experienced significant inflows of $849.68 million, with a minimal increase of 0.04% in AUM [1] Asset Class Performance - Commodities ETFs recorded net inflows of $663.09 million, with a 0.22% increase in AUM [1] - In contrast, US Equity faced net outflows of $206.12 million, showing no change in AUM percentage [1] - Alternatives and Currency categories experienced net outflows of $8.18 million and $8.03 million respectively, with negligible changes in AUM [1] Other Notable Trends - International Fixed Income saw net inflows of $320.87 million, reflecting a 0.09% increase in AUM [1] - Leveraged ETFs had net outflows of $154.25 million, resulting in a decrease of 0.10% in AUM [1] - The Inverse category recorded a small net inflow of $11.75 million, with a 0.08% increase in AUM [1]

Market Overview - The core stock market ETFs, particularly the Semiconductors Sector ETF (SMH) and the Biotechnology Sector ETF (IBB), show optimism similar to the S&P 500, Dow Industrials, and NASDAQ 100, with SMH reaching a new all-time high while IBB remains below its peak from 2021 [1] - The Russell 2000 ETF (IWM) is just below its all-time high established two weeks ago, indicating mixed price action that is more neutral than bullish [3] Sector Performance - The Retail Sector ETF (XRT) and Regional Banks ETF (KRE) are identified as the weakest links among core ETFs [2] - The Transportation Sector ETF (IYT) is barely above the 50-Day Moving Average and has been underperforming relative to the S&P 500 ETF (SPY), indicating a divergence in performance [3][4] - The IYT has been stuck in the middle of the monthly high and low, with two closes above the 50-DMA needed for a positive outlook [5] Economic Drivers - The underperformance of the U.S. Transportation Sector can be attributed to structural, cyclical, and investor-sentiment factors, including weak freight/demand growth and rising operational costs [4][8] - A shift in the economy towards services and digital goods is reducing the growth of heavy goods movement, impacting transportation sector performance [8] - Investor perception of a potential slowdown or mild recession is leading to early discounting of transportation stocks compared to other sectors [8]

Market Overview - The market is experiencing a positive start to the week, with the S&P and NASDAQ both up, while the Dow remains unchanged and the Russell is slightly above unchanged [1] - There is a bullish sentiment regarding the continuation of the market rally, particularly in the technology and cryptocurrency sectors, which are seen as leading indicators [2][3] Market Predictions - The market could potentially rise by at least 20% by 2026, drawing parallels to the internet boom of the late 1990s, with the current AI boom being a significant factor [4][5] - Despite short-term overbought conditions, dips in the market have been shallow and aggressively bought, indicating a strong upward trend [6] Federal Reserve Influence - The Federal Reserve is expected to cut interest rates in a non-recessionary environment, which is viewed as a favorable setup for market growth [7] Bubble Concerns - There is acknowledgment of the AI bubble, which is expected to grow larger before it eventually bursts, prompting a proactive approach to risk management [8][9] Investment Strategy - A strategy of buying the dip is recommended rather than a buy-and-hold approach, especially in technology stocks, which are likely to be hit hardest when the bubble bursts [10][12] - Diversification is advised, with suggestions to include gold and defensive sectors such as utilities, staples, and healthcare [11][12] Sector Performance - Small caps have been outperforming the S&P over the last three months, and this trend is expected to continue, along with financials benefiting from a lower interest rate environment [14][15] - Consumer discretionary stocks have also been increased in the portfolio, indicating a broadening of investments beyond just high-flying tech stocks [15] Investment Vehicles - ETFs are preferred for small cap investments due to their volatility, with specific holdings like IWM being utilized for exposure [16]

Group 1 - The FDA is phasing out animal testing, which is a positive development for companies like Certara that operate in the bio simulation space [1] - There is a notable increase in GDX, indicating a bullish trend in the market [1] - The Russell 2000 index is experiencing a delay in performance, showing signs of a massive triple top formation, suggesting potential selling opportunities for IWM [1]

Group 1 - SoFi shares have reached an all-time high, with expectations for upgrades to boost the stock price in the coming week [1] - Clearway Energy is highlighted for its 6.5% dividend yield, with a focus on growing earnings and dividends despite market rhetoric about clean energy [2] - The healthcare sector within small caps is noted, with a significant weighting of 16% in the IWM index [2] Group 2 - CrowdStrike's stock has increased by $50, indicating strong market performance [2]