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Markets & the Economy: Deceptive Strength

This content does not reflect any recommendations of Baird.

Two months after the stock market’s climatic Tariff Panic low, there remains still plenty for investors to fret over. But the behavior & messaging of the market itself aren’t among them. Mega cap tech leaders back in gear, cyclical sectors holding up, credit conditions benign and volatility subdued.

With the major indexes within 3% of their old peak, how does the risk reward balance look from here?

Add it to the ETF Line Up

New Launches: (week ending 6/13) a few highlights…

  • FMKT~ The Free Markets ETF
  • HBDC~ Hilton BDC Corporate Bond ETF
  • IGME~ Bitwise GME Option Income Strategy ETF (covered call funds have gained significant traction, especially on volatile names with cult like retail followings)

New Filings: Circle

Recent IPO Circle about to get the ETF treatment…filings for a 2x Circle ETF & covered call strategy

  • ProShares Ultra CRCL ETF (leveraged 2x)
  • Bitwise CRCL Option Income Strategy ETF (covered call)

But looks like T-Rex could beat them both to market by about 1.5 weeks with their leveraged single stock ETF on CRCL (effective date 8/11 vs ProShares 8/20)

ETF Check Up: Single Security ETFs, IBIT, Flow Show

There is a 2x single stock gold rush going on…

  • They make up 16% of all ETF launches with 15 issuers in the game
  • On pace for $20b inflows

Single-security ETF launches

IBIT just blew through $70B and is now the fastest ETF to ever hit that mark in only 341 days! which is 5x faster than the old record held by GLD of 1691 days

IBIT just blew through $70B and is now the fastest ETF to ever hit that mark in only 341 days

Here’s the Top 20 most traded ETFs by year, interesting to see how this has evolved over the years

  • Notable VOO at #5 could make a run at SPY soon (to be biggest and most liquid)
  • Also IBIT & TSLL are both babies, wild for them to make the list

Top 20 most traded ETFs by year