The Compound and Friends

Small Caps Rip

Jul 19, 2024

Join Michael Batnick and Downtown Josh Brown as they chat with Todd Sohn, an ETF strategist, about small cap stocks, tech stock odds, semiconductors, thematic ETFs, Trump economics, and more. They dive into market trends, movements of money, trading behaviors, and insights on ETF launches and durability in the market. The conversation also covers Wall Street networking, entertainment trends, and a casual chat about Newport, Rhode Island and the movie True Lies.

01:32:39

Episode guests

Todd Sohn

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Highlights

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Thematic ETFs face challenges due to oversaturation, leading to potential closures during market downturns.

Launching ETFs has become more accessible with offerings as low as $100,000, driving an increase in active and thematic products.

Active ETFs require around $200 million in assets for long-term profitability, emphasizing the significance of sustainable asset levels.

Deep dives

Thematic ETFs: A Supply and Demand Issue

Thematic ETFs face challenges with oversaturation as there are around 200 products with less than $50 million in assets. The supply of thematic ETFs exceeds demand, leading to profit challenges for issuers and potential closures during market downturns.

Quality Skews as the Cycle Ages

00:40

Quality Over Quantity in a Bull Market

00:40

Maximizing Learning Through Reading Efficiency

00:38

Intro

3min

Nostalgic Conversations and Disney Enthusiasm

7min

Market Analysis and Stock Rotation Discussion

4min

Movement of Money into Small Caps

16min

Exploring ETFs, Tech Sector Dominance, and Trading Behavior

10min

Comparing Energy Stocks, Apple, and Market Trends

12min

Insights on ETF launches and durability in the market

2min

Launching thematic ETFs and market trends

22min

Wall Street Networking and Entertainment Trends

13min

10.

Casual Conversation About Newport, Rhode Island and True Lies Movie

3min

On episode 150 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Todd Sohn, ETF and Technical Strategist at Strategas, to discuss: small cap stocks, the odds of tech stocks faltering, semiconductors, cash off the sidelines, thematic ETFs, Trump economics, and much more!

This episode is sponsored by STF Management. Learn more about the STF Tactical Growth and Income (TUGN) ETF at: https://stfm.com/etf/tugn/

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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.

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The Compound and Friends

Small Caps Rip

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Thematic ETFs: A Supply and Demand Issue

The Evolution of ETF Launches

Thematic ETF Profitability Threshold

The Role of Active ETFs in the Market

Marketing strategies and market performance

Market trends and economic factors

Quality Skews as the Cycle Ages

Quality Over Quantity in a Bull Market

Maximizing Learning Through Reading Efficiency

Remember Everything You Learn from Podcasts