Fill The Gap: The Official Podcast of the CMT Association

Episode 43: Navigating Markets with Todd Sohn, CMT

Oct 25, 2024

Todd Sohn, CMT, is an ETF and technical strategist at Strategas Securities, renowned for his market insights on CNBC. He discusses the booming $10 trillion ETF market and the rise of actively managed ETFs. Todd highlights actionable strategies for sector rotation, the impact of investor sentiment, and the risks posed by cap-weighted indices. He examines investment opportunities in metals and the nuances of active ETFs, while addressing market dynamics between Japan and India. Tune in for expert advice on navigating today's complex financial landscape!

01:15:09

Episode guests

Todd Sohn

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Episode notes

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Quick takeaways

The explosive growth of the ETF market, now exceeding $10 trillion, signifies a pivotal shift towards actively managed ETFs, reflecting changing investor preferences.

Using technical analysis across various asset classes allows investors to efficiently track trends and make informed decisions without relying solely on fundamental analysis.

Understanding the concentration risks of cap-weighted ETFs is essential for true diversification, as overexposure to leading stocks can misrepresent actual risk management.

Deep dives

The Growth of Active ETFs

The podcast highlights the significant growth of the ETF market, which has surpassed $10 trillion in assets under management, with $800 billion now flowing into active ETFs. This evolution indicates a shift in how traditional mutual fund managers are adopting the ETF structure, recognizing the gradual decline of the mutual fund wrapper. Active ETFs are characterized by their management style, often involving the strategic use of derivatives to maintain flexibility and responsiveness to market changes. This means that investors need to understand the underlying structures and risk profiles of these products to effectively navigate the evolving landscape.

Intro

2min

Navigating the ETF Landscape

14min

Understanding Market Trends Through Technical Analysis

30min

Navigating Market Nuances and Investment Strategies

11min

Understanding Buffered Products and Structured Investment Options

1min

Navigating Active Management in ETFs

14min

Market Dynamics: India, Japan, and Strategic Rotations

3min

In this episode of Fill the Gap: The Official Podcast of the CMT Association, we welcome Todd Sohn, CMT, a leading ETF strategist and technical market analyst at Strategas. Todd shares his unique perspective on the ever-evolving $10 trillion ETF landscape, which has seen explosive growth in recent years. We explore the rapid rise of actively managed ETFs, now comprising over 8% of total ETF assets—a figure that has doubled in just the past three years.

Join us as Todd dives into actionable insights for managing rapid sector rotation, the critical intersections of thematic investing with trend following, and the importance of sentiment and fund flow data, with notable closures of China-focused ETF products. He also examines how cap-weighted indices and ETF products compound the concentration dilemma and offers his thoughts on how to best manage risk.

Whether you're a seasoned investor or new to ETFs and technical analysis, this episode delivers expert-level guidance for navigating today's complex markets. Tune in for an engaging discussion packed with practical advice, professional anecdotes, and Todd's distinctive approach to solving market puzzles.

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

For complete show notes of every episode, visit: https://cmtassociation.org/development/podcasts/

Give us a shout:
@dlundgren3333 or
https://www.linkedin.com/in/david-lundgren-cmt-cfa-63b73b/
@_TBone_Pickens or
https://www.linkedin.com/in/tyler-wood-cmt-b8b0902/
@CMTAssociation or
https://www.linkedin.com/company/cmtassociation

CMT Association is the global credentialing authority committed to advancing the discipline of technical analysis in the financial services industry. We serve members in over 137 countries. Our mission is to elevate investors mastery and skill in mitigating market risk and maximizing return in capital markets through a rigorous credentialing process, professional ethics, and continuous education. CMT Association formed in the late 1960s with headquarters in lower Manhattan, NY and Mumbai, India.

Learn more at: www.cmtassociation.org

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