Ryan Grabinski
Portfolio Manager
What Happened in July and What Changes Were Made?
08/18/2026
We continue to believe we are in the midst of a bull market, supported by three key fundamental factors: continued growth in corporate profits, a labor market characterized by low levels of layoffs, and relatively loose financial conditions. Of these three building blocks, we are monitoring financial conditions most closely. While the ongoing debate around potential rate hikes continues to dominate the financial press, the capital markets remain open and active. Debt issuance remains strong, and additional equity offerings continue to provide companies with access to capital. We will continue to monitor for shifts in these underlying conditions that could ultimately signal a change in the capital spending cycle we are currently experiencing.
July was a challenging month for us, primarily for three reasons. The first factor was that several of the constituents we own were part of the Russell rebalance. These stocks were bid up toward the end of June and subsequently sold off during the first week of July. Second, we were in the process of reducing our technology exposure, which left us with higher levels of cash and caused us to miss some of the rebound in technology stocks following the earlier selling pressure. Finally, two of the Magnificent Seven companies reported exceptionally strong earnings during the month. Given that our portfolio is intentionally more concentrated than the broader index, our lower exposure to these companies was a headwind to performance in July.
The three primary changes we made were as follows. First, we shifted our AI exposure away from memory and broad-based semiconductor exposure and toward optical components, as our work continues to indicate that this area is most susceptible to supply shortages given the strength of demand. Second, within power generation, we have placed greater emphasis on off-grid and self-reliant power generation as opposition to the development of new data centers continues to build across various regions. Third, we have begun increasing our exposure to space-related companies as part of our broader deglobalization theme, particularly as much of the enthusiasm surrounding a potential SpaceX IPO appears to be dissipating.
Click here for Strategas Macro Thematic Opportunities ETF (SAMT)'s holdings:Strategas ETFS - Strategas Macro Thematic Opportunities ETF
Holdings are subject to change without notice.
This communication was prepared by Strategas Asset Management, LLC ("we" or "us" or “our”). This communication represents our views as of 08/17/2026, which are subject to change. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.
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In addition to the normal risks associated with investing, the Strategas Global Policy Opportunities ETF (SAGP) is subject to lobbying focused investment risk. The adviser's investment process utilizes lobbying intensity as the primary input when selecting investments for the Fund's portfolio and does not consider an investment's traditional financial metrics. The Fund may underperform other funds that select investments utilizing more traditional investment metrics. The Fund may also focus its investments in a particular country or geographic region outside the U.S. and may be more susceptible to economic, political, regulatory or other events or conditions affecting issuers and countries within that country or geographic regions well as risks of increased volatility and lower trading volume.
In addition to the normal risks associated with investing, the Strategas Macro Thematic Opportunities ETF (SAMT) is subject to macro-thematic trend investing strategy risk. Therefore, the value of the Fund may decline if, among other reasons, macro-thematic trends believed to be beneficial to the Fund do not develop as anticipated or maintain over time, or the securities selected for inclusion in the Fund's portfolio do not perform as anticipated.
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The Funds may be more heavily invested in particular sectors and may be especially sensitive to factors and economic risks that specifically affect those sectors.
What Happened in July and What Changes Were Made?
Aug 18 2026