ETF Edge, August 17, 2026

Summary

Sam Huszczo is broadly bullish, pointing to earnings strength, a semiconductor rebound, and factor trades in equal weight and momentum, while urging investors to own longer-duration bonds and avoid yield-chasing products. Victor Haghani is more cautious: he is underweight US equities, overweight non-US equities and fixed income, and warns that the shift from buybacks to heavy equity issuance could create a market reckoning in 2027. The discussion covers AI capex flows, factor diversification, dynamic asset allocation, and risks in high-yield and private credit ETFs.

• Sam sees broad market strength with 10 of 11 sectors beating earnings and semiconductor revenue growth projected at 64%.
• Sam's factor trade pairs equal-weight equity exposure with momentum for uncorrelated alpha.
• Sam warns against yield-chasing ETFs like private credit, high-yield, and option income products.
• Sam prefers target date maturity bond funds and intermediate-to-long duration for downside protection.
• Victor is underweight US equities because long-term expected returns are near Treasury yields.
• Victor overweight non-US equities after 30 years of US outperformance left US valuations roughly double.
• Victor warns about up to a $1.5 trillion swing in corporate equity supply from buybacks to issuance.
• Victor advocates dynamic asset allocation through low-cost index ETFs rather than static passive allocation.