1 00:00:08,840 --> 00:00:13,710 Suze: May 31st, 2026. Welcome everybody to the Women and Money podcast, 2 00:00:13,720 --> 00:00:17,739 Suze: and everybody smart enough to listen. And today is Suze School. 3 00:00:18,159 --> 00:00:21,540 Suze: So get out your Suze notebooks. But before I start, 4 00:00:22,000 --> 00:00:27,879 Suze: two things. Number one. June 1st, tomorrow, 7:30 p.m. East 5 00:00:27,879 --> 00:00:32,270 Suze: Coast time, I will be on live on CNN, Erin Burnett, 6 00:00:32,400 --> 00:00:35,330 Suze: please tune in. You never know what we're gonna tell you, 7 00:00:35,560 --> 00:00:37,159 Suze: 'cause I never know what I'm gonna say. 8 00:00:37,450 --> 00:00:39,880 Suze: Do you know it's actually been years since I've been 9 00:00:39,880 --> 00:00:43,889 Suze: on live TV. Anyway, that's number one. Number two, make 10 00:00:43,889 --> 00:00:48,250 Suze: sure you register for the June 4th webinar. Go to 11 00:00:48,250 --> 00:00:52,279 Suze: Suze Orman.com. It starts at 6 p.m. East Coast time, 12 00:00:52,610 --> 00:00:55,930 Suze: and again, it is free. If you already saw or 13 00:00:55,930 --> 00:01:00,950 Suze: registered for April 23rd webinar, you don't have to register again, 14 00:01:01,130 --> 00:01:06,949 Suze: but I can tell you, we now have over 100,000 15 00:01:07,550 --> 00:01:11,300 Suze: registrations. Makes me happy. It's gonna be me and Keith 16 00:01:11,300 --> 00:01:15,779 Suze: for the entire time, very different than the April 23rd one, 17 00:01:16,110 --> 00:01:19,500 Suze: which was personal finances. This is all about what stocks 18 00:01:19,500 --> 00:01:25,730 Suze: to buy, what ETFs to buy, real estate, REITs, bonds, gold, Bitcoin, 19 00:01:25,989 --> 00:01:28,989 Suze: all of it, got it? Don't forget there will be 20 00:01:28,989 --> 00:01:31,110 Suze: birthday pricing because the next day, 21 00:01:31,535 --> 00:01:36,394 Suze: June 5th is my birthday. So if you've ever wanted 22 00:01:36,694 --> 00:01:40,535 Suze: to buy the Must-Have Documents or the Ultimate Scam Protection, 23 00:01:41,055 --> 00:01:43,735 Suze: that is the time to do it. You can kind 24 00:01:43,735 --> 00:01:48,074 Suze: of guess at what that price will be. All right, 25 00:01:48,574 --> 00:01:51,535 Suze: are we ready to begin now? It is no secret, 26 00:01:51,614 --> 00:01:53,614 Suze: or maybe you still don't know, so maybe it is 27 00:01:53,614 --> 00:01:58,855 Suze: a secret that Keith brought out Fitz, F I T Z. 28 00:01:59,669 --> 00:02:03,750 Suze: The ETF that we have been talking about now for what, 29 00:02:03,870 --> 00:02:07,750 Suze: two years, and that came out last Thursday. 30 00:02:08,800 --> 00:02:13,899 Suze: And it came out to a tremendous, tremendous success. Over 31 00:02:13,899 --> 00:02:20,750 Suze: 1 million shares were purchased, priced around $25. And then 32 00:02:20,750 --> 00:02:22,460 Suze: again on Friday, 33 00:02:23,149 --> 00:02:28,500 Suze: about 600,000 shares were purchased right around the same price, 34 00:02:28,779 --> 00:02:35,259 Suze: and so that means about $40 million went into that 35 00:02:35,258 --> 00:02:39,889 Suze: ETF in just two days. So when you compare it 36 00:02:39,889 --> 00:02:41,880 Suze: to everything else that's out there. 37 00:02:42,309 --> 00:02:45,449 Suze: This is one of the greatest successes of ETFs that 38 00:02:45,449 --> 00:02:49,070 Suze: came out that are a managed ETF, not Bitcoin or 39 00:02:49,070 --> 00:02:54,109 Suze: some big ETF, but really congratulations to Keith and to 40 00:02:54,110 --> 00:02:59,360 Suze: all of you who participated, tremendous success. But what I 41 00:02:59,360 --> 00:03:04,029 Suze: need all of you to understand is an ETF is 42 00:03:04,029 --> 00:03:08,549 Suze: not like an IPO when you bring it out. An 43 00:03:08,550 --> 00:03:10,119 Suze: IPO is initial public offering. 44 00:03:12,470 --> 00:03:17,550 Suze: And when it goes to market, there are always enough 45 00:03:17,550 --> 00:03:21,529 Suze: shares for you to buy, sell, do anything you want with, 46 00:03:21,750 --> 00:03:26,109 Suze: and all the brokerage firms usually offer it. With an 47 00:03:26,110 --> 00:03:32,779 Suze: exchange traded fund, it doesn't work that way on any level. 48 00:03:33,350 --> 00:03:37,110 Suze: First of all, when an exchange traded fund first comes out, 49 00:03:38,080 --> 00:03:42,880 Suze: what happens is each firm gets to decide when they're 50 00:03:42,880 --> 00:03:44,080 Suze: going to list it at their firm. 51 00:03:44,800 --> 00:03:49,169 Suze: Or if they're going to list it. And when a 52 00:03:49,169 --> 00:03:54,570 Suze: new ETF comes out, especially with somebody that isn't like 53 00:03:54,570 --> 00:03:57,490 Suze: a big person, not that Keith isn't, but you know 54 00:03:57,490 --> 00:04:00,389 Suze: what I mean, like a BlackRock or any of those, 55 00:04:01,570 --> 00:04:03,720 Suze: sometimes they don't want to take a chance on it. 56 00:04:04,250 --> 00:04:06,990 Suze: Sometimes they go, oh, we'll see, we'll just see how 57 00:04:06,990 --> 00:04:08,070 Suze: it's doing. 58 00:04:08,750 --> 00:04:13,160 Suze: And even though Schwab and Fidelity and Vanguard and E-Trade 59 00:04:13,160 --> 00:04:17,239 Suze: and T. Rowe Price and a lot of firms let 60 00:04:17,238 --> 00:04:21,760 Suze: it be traded on their platforms, many like Merrill Lynch 61 00:04:21,760 --> 00:04:25,719 Suze: did not, and that aggravated a lot of you. You 62 00:04:25,720 --> 00:04:30,799 Suze: didn't quite understand it, and that's because an exchange traded 63 00:04:30,799 --> 00:04:34,940 Suze: fund is not like an individual stock. 64 00:04:35,279 --> 00:04:39,290 Suze: That there's only one stock listed everywhere, can go up 65 00:04:39,290 --> 00:04:44,350 Suze: or down, that's it. An exchange traded fund and especially FITZ, 66 00:04:44,690 --> 00:04:49,409 Suze: currently has 28 individual stocks in it. 67 00:04:50,299 --> 00:04:55,700 Suze: Twenty-eight. So when you buy it, there has to be 68 00:04:55,700 --> 00:05:00,579 Suze: enough shares in that exchange traded fund for you to 69 00:05:00,579 --> 00:05:04,349 Suze: be able to purchase a slice of all those shares. 70 00:05:05,500 --> 00:05:10,760 Suze: A run on the ETF happened, which means more money 71 00:05:11,410 --> 00:05:16,450 Suze: came into the ETF than any of the market makers 72 00:05:16,450 --> 00:05:20,058 Suze: were expecting. So what did they do? They had to 73 00:05:20,059 --> 00:05:24,579 Suze: close it down for a few minutes and therefore put 74 00:05:24,579 --> 00:05:28,200 Suze: more shares of all those stocks in there. 75 00:05:29,010 --> 00:05:33,730 Suze: So that your money could buy actual shares, and that 76 00:05:33,730 --> 00:05:37,488 Suze: happened three or four times on Thursday. 77 00:05:38,260 --> 00:05:43,209 Suze: And that was a really good sign. Everybody. What that 78 00:05:43,209 --> 00:05:48,170 Suze: said is more people wanted to buy Fitz F I 79 00:05:48,170 --> 00:05:53,130 Suze: T Z than what the New York Stock Exchange and 80 00:05:53,130 --> 00:05:58,349 Suze: the market makers thought were going to be bought. Just 81 00:05:58,350 --> 00:06:02,829 Suze: that simple. Well, to tell you the truth, they were shocked. 82 00:06:03,130 --> 00:06:04,489 Suze: They were surprised. 83 00:06:05,089 --> 00:06:09,359 Suze: And they were the ones that lost out in many 84 00:06:09,359 --> 00:06:14,779 Suze: ways because they didn't fund it enough, not anybody's problem. 85 00:06:15,000 --> 00:06:18,760 Suze: It was their risk. It's their stock that they put 86 00:06:18,760 --> 00:06:22,959 Suze: into this exchange traded fund, and guess what? They kept 87 00:06:22,959 --> 00:06:26,678 Suze: having to put more and more and more in as 88 00:06:26,678 --> 00:06:28,440 Suze: time goes on. 89 00:06:29,579 --> 00:06:35,359 Suze: And as FITZ makes its mark, people start to know it, 90 00:06:36,250 --> 00:06:40,420 Suze: every place around will go, why didn't we do that 91 00:06:40,579 --> 00:06:44,609 Suze: the day it came out. The other thing I want 92 00:06:44,609 --> 00:06:45,859 Suze: you to understand. 93 00:06:46,428 --> 00:06:50,510 Suze: You do not have to be afraid of missing out. 94 00:06:50,589 --> 00:06:53,988 Suze: It's not like an IPO, a stock that comes out 95 00:06:53,988 --> 00:06:58,070 Suze: at 18, like, I'll never forget this with Facebook, comes 96 00:06:58,070 --> 00:07:01,630 Suze: out at 18, goes to 48 immediately, then right back 97 00:07:01,630 --> 00:07:05,250 Suze: down again to 18. Now it's Meta, of course, but 98 00:07:05,320 --> 00:07:11,190 Suze: it's not like that because you have 28 individual stocks 99 00:07:11,190 --> 00:07:11,809 Suze: in there. 100 00:07:13,049 --> 00:07:16,799 Suze: All those stocks have to move a certain percentage or 101 00:07:16,799 --> 00:07:21,690 Suze: whatever for you to get a tremendous move in the 102 00:07:21,690 --> 00:07:26,730 Suze: exchange traded funds price so you don't have to worry 103 00:07:26,730 --> 00:07:30,730 Suze: about missing out on anything. So it came out at 104 00:07:30,730 --> 00:07:37,329 Suze: about 25.30 ($25.30). That's where I bought it at. That's 105 00:07:37,329 --> 00:07:39,970 Suze: where Keith probably bought it at. I have a feeling, 106 00:07:40,089 --> 00:07:41,559 Suze: not sure exactly, but. 107 00:07:42,190 --> 00:07:43,380 Suze: Here's the thing. 108 00:07:44,230 --> 00:07:47,239 Suze: Stop thinking you got to get in right away. If 109 00:07:47,239 --> 00:07:49,140 Suze: you don't buy it today, it's gonna be too late. 110 00:07:49,679 --> 00:07:55,279 Suze: It's an exchange traded fund. It is not a stock, 111 00:07:55,440 --> 00:07:57,679 Suze: and you are not to treat it like a stock, 112 00:07:57,920 --> 00:08:02,480 Suze: which is why you buy an exchange traded fund. Listen, 113 00:08:02,920 --> 00:08:08,200 Suze: individual stocks will make bigger moves all the time by 114 00:08:08,200 --> 00:08:11,160 Suze: themselves because they're individual. 115 00:08:11,730 --> 00:08:14,920 Suze: They go up, they go down, they're priced just as 116 00:08:14,920 --> 00:08:15,970 Suze: they are. 117 00:08:16,920 --> 00:08:21,470 Suze: For an exchange traded fund, I'm going to repeat this, everybody, 118 00:08:21,989 --> 00:08:26,730 Suze: 28 stocks, they all move. Some move up, some move down, 119 00:08:26,920 --> 00:08:32,429 Suze: and it averages out. So therefore stop worrying you didn't 120 00:08:32,429 --> 00:08:38,130 Suze: miss out on anything. It's just that simple. The reason 121 00:08:38,130 --> 00:08:39,229 Suze: that you want 122 00:08:39,469 --> 00:08:44,030 Suze: an exchange traded fund like FITZ for instance is if 123 00:08:44,030 --> 00:08:48,250 Suze: you look at the 28 stocks that are in there 124 00:08:48,830 --> 00:08:53,950 Suze: in the portfolio, every one of those stocks are a 125 00:08:53,950 --> 00:08:57,589 Suze: stock that you would want to own, but a lot 126 00:08:57,590 --> 00:09:01,429 Suze: of you don't have the money to buy all 28. 127 00:09:01,710 --> 00:09:04,270 Suze: He can buy up to 30, by the way, that 128 00:09:04,270 --> 00:09:07,270 Suze: you don't have the money to buy all 28 to 129 00:09:07,270 --> 00:09:08,270 Suze: watch all 28, 130 00:09:09,104 --> 00:09:13,944 Suze: to keep dollar cost averaging every single month into the 28. 131 00:09:14,184 --> 00:09:16,625 Suze: You don't have maybe the time and the knowledge of 132 00:09:16,625 --> 00:09:20,304 Suze: how do you rebalance the 28 stocks that are in there, 133 00:09:20,544 --> 00:09:24,215 Suze: and those are all things that Keith will be doing 134 00:09:24,215 --> 00:09:28,544 Suze: for you. You just have to do one thing, and 135 00:09:28,544 --> 00:09:34,664 Suze: that one thing is this you buy FITZ, the exchange 136 00:09:34,664 --> 00:09:35,544 Suze: traded fund. 137 00:09:35,989 --> 00:09:39,199 Suze: And that's it. And you own a little bit of 138 00:09:39,200 --> 00:09:43,559 Suze: all the stocks that I know you want to own. 139 00:09:43,679 --> 00:09:49,880 Suze: Now the question becomes, well, what's in it? Some of 140 00:09:49,880 --> 00:09:54,069 Suze: you are just so funny. Well, what's the top 10 holdings? 141 00:09:54,119 --> 00:09:56,799 Suze: What are they, Suze? I can't find them. They're all 142 00:09:56,799 --> 00:10:02,059 Suze: listed if you look, but here are the 28 stocks 143 00:10:02,280 --> 00:10:03,439 Suze: that make up the FITZ ETF: 144 00:10:07,390 --> 00:10:17,530 Suze: Nvidia, Tesla, Apple, JPMorgan Chase, Palantir, IONQ, Advanced Micro Devices, Broadcom, 145 00:10:17,869 --> 00:10:24,750 Suze: Lockheed Martin, Walmart, RTX, Chevron, Eli Lilly, CrowdStrike, Rocket, 146 00:10:24,965 --> 00:10:32,174 Suze: LabCorp, ABV, Care Trust REIT, Gilead Sciences, Microsoft, GE Vernova, 147 00:10:32,455 --> 00:10:40,135 Suze: Waste Management, Exxon, Costco, Amazon, Alphabet, Kinder Morgan, Meta Platform, 148 00:10:40,255 --> 00:10:42,534 Suze: and Proctor and Gamble. 149 00:10:43,659 --> 00:10:47,619 Suze: You have incredible variety there. Do you see that? If 150 00:10:47,619 --> 00:10:52,459 Suze: all of your artificial intelligence stocks now, IONQ, Palantir, if 151 00:10:52,460 --> 00:10:58,260 Suze: they are all skyrocketing, OK, they're skyrocketing in this portfolio 152 00:10:58,260 --> 00:11:01,820 Suze: as well. But if the other stocks are not, you're 153 00:11:01,820 --> 00:11:04,819 Suze: not going to have the movement in price as you 154 00:11:04,820 --> 00:11:08,859 Suze: would in the individual stocks. But I got news for you. 155 00:11:09,599 --> 00:11:14,140 Suze: When those stocks, do you remember Palantir going from 210 156 00:11:14,349 --> 00:11:20,010 Suze: all the way down to 125, IONQ going down to 25, 157 00:11:20,400 --> 00:11:22,090 Suze: from I think 85. 158 00:11:22,960 --> 00:11:28,049 Suze: Even if they do that within this portfolio, the other 159 00:11:28,049 --> 00:11:31,250 Suze: stocks that are in there will balance it out. 160 00:11:31,909 --> 00:11:35,478 Suze: And if you ask me, that is what the majority 161 00:11:35,479 --> 00:11:40,239 Suze: of you need right now. You need balance. That doesn't 162 00:11:40,239 --> 00:11:44,479 Suze: mean that if you have the ETF fits, that you 163 00:11:44,479 --> 00:11:50,679 Suze: don't own shares maybe of Palantir, IONQ, AMD, all of 164 00:11:50,679 --> 00:11:52,849 Suze: those that we've talked about in the past. 165 00:11:53,580 --> 00:11:57,020 Suze: That are doing incredible Tesla, all of them, you can 166 00:11:57,020 --> 00:11:57,960 Suze: have both. 167 00:11:58,830 --> 00:12:03,609 Suze: This is not an all or nothing investment strategy. So, 168 00:12:03,960 --> 00:12:10,239 Suze: that's what Fitz's ETF is about. This ETF was created 169 00:12:10,239 --> 00:12:11,030 Suze: for a long-term hold. 170 00:12:13,780 --> 00:12:19,118 Suze: He's calling it the must-have portfolio because everything in there 171 00:12:19,619 --> 00:12:23,260 Suze: happens to manufacture or is involved with things that most 172 00:12:23,260 --> 00:12:27,659 Suze: of you must have every day that you use, items 173 00:12:27,659 --> 00:12:30,619 Suze: that you need, you use, and you want. 174 00:12:31,380 --> 00:12:35,559 Suze: And so what that does is it creates a long 175 00:12:35,559 --> 00:12:42,059 Suze: term investment horizon, slow and steady, and the goal of 176 00:12:42,059 --> 00:12:46,000 Suze: this is that over a longer period of time, maybe 177 00:12:46,000 --> 00:12:50,989 Suze: a few years or whatever, that it should outperform the 178 00:12:50,989 --> 00:12:57,039 Suze: Standard and Poor's 500 index because really what's making the 179 00:12:57,039 --> 00:13:01,140 Suze: S&P go up are just a few of the stocks. 180 00:13:01,539 --> 00:13:05,460 Suze: That are in this portfolio, by the way, but your 181 00:13:05,460 --> 00:13:11,119 Suze: money is invested in 500 stocks, 1,000 stocks, 2,000 stocks 182 00:13:11,340 --> 00:13:16,400 Suze: that really that money isn't doing anything in those other stocks. 183 00:13:17,309 --> 00:13:21,580 Suze: Keith has created, in my opinion, an ETF where your 184 00:13:21,580 --> 00:13:25,419 Suze: money will be doing well in all the stocks that 185 00:13:25,419 --> 00:13:30,559 Suze: are in there, especially depending on what's happening in the economy. 186 00:13:31,309 --> 00:13:37,209 Suze: The political situations and in life in general. So how 187 00:13:37,210 --> 00:13:41,690 Suze: do you invest in FITZ? You invest on a dollar 188 00:13:41,690 --> 00:13:46,150 Suze: cost averaging basis. You do not put all your money 189 00:13:46,150 --> 00:13:50,919 Suze: in at one time. Now I bought it on Thursday. However, 190 00:13:51,049 --> 00:13:54,429 Suze: I put a substantial sum in, but not as much 191 00:13:54,650 --> 00:13:58,449 Suze: as I intend to put in over time. 192 00:13:59,119 --> 00:14:04,590 Suze: Because you have to dollar cost average in markets like this. 193 00:14:05,010 --> 00:14:07,640 Suze: You cannot just say, oh, the markets are down, here's 194 00:14:07,640 --> 00:14:08,510 Suze: all my money. 195 00:14:09,200 --> 00:14:11,250 Suze: And then all of a sudden it goes down more, 196 00:14:11,450 --> 00:14:16,210 Suze: and you can't take advantage of buying more shares when 197 00:14:16,210 --> 00:14:21,669 Suze: something goes from 210 to 180 to 150 to 125, 198 00:14:21,690 --> 00:14:23,690 Suze: and now it's back up again, all right? 199 00:14:24,630 --> 00:14:28,859 Suze: So, it's essential that's how you invest. So, if you 200 00:14:28,859 --> 00:14:34,510 Suze: are going to invest in FITZ, you have to have 201 00:14:34,510 --> 00:14:40,309 Suze: a very long term time horizon. Be patient with it. 202 00:14:41,210 --> 00:14:44,890 Suze: And understand you're gonna be doing a dollar cost averaging 203 00:14:44,890 --> 00:14:49,830 Suze: technique every single month. I don't care if it's $25 204 00:14:50,010 --> 00:14:54,210 Suze: a month, $50 a month, $5000 a month, you are 205 00:14:54,210 --> 00:14:56,969 Suze: not gonna put all your money in there at once. 206 00:14:57,250 --> 00:15:00,409 Suze: Does that mean that I want you to sell and 207 00:15:00,409 --> 00:15:03,770 Suze: get out of your VTI or your VO or all 208 00:15:03,770 --> 00:15:07,330 Suze: the other funds that I told you about? No. 209 00:15:08,340 --> 00:15:11,700 Suze: But there's a place for everything, and there is a 210 00:15:11,700 --> 00:15:17,299 Suze: place for FITZ in every single one of your portfolios 211 00:15:17,299 --> 00:15:22,359 Suze: in most cases. So, just something for you to think about, 212 00:15:22,539 --> 00:15:26,919 Suze: but don't expect it to skyrocket like SMH is doing now. 213 00:15:27,510 --> 00:15:32,989 Suze: Right, which was my favorite semiconductor ETF. It's all semiconductors, 214 00:15:33,190 --> 00:15:38,940 Suze: but watch if it turns around, watch it plummet. So, again, 215 00:15:39,070 --> 00:15:43,710 Suze: there's a time and place for everything, but it does 216 00:15:43,710 --> 00:15:48,710 Suze: dawn on me that maybe you should really understand what 217 00:15:48,710 --> 00:15:54,429 Suze: does it actually take for an ETF to come to market. 218 00:15:55,049 --> 00:15:57,919 Suze: So, here's what I want to tell you. Here's how 219 00:15:57,919 --> 00:15:58,969 Suze: it works. Ready? 220 00:16:00,010 --> 00:16:05,809 Suze: Every ETF starts with an idea, just that simple. Maybe 221 00:16:05,809 --> 00:16:09,140 Suze: it's a new way to invest in dividend paying stocks. 222 00:16:09,450 --> 00:16:11,489 Suze: Maybe it's a technology theme. 223 00:16:12,020 --> 00:16:16,479 Suze: Maybe it's a different approach to managing risk or maybe 224 00:16:16,479 --> 00:16:21,619 Suze: in Keith's case it's the belief that a carefully selected 225 00:16:21,619 --> 00:16:27,859 Suze: portfolio of exceptional companies can help you, the investor, build 226 00:16:27,859 --> 00:16:32,299 Suze: wealth over the long term. Can you underline long term? 227 00:16:33,020 --> 00:16:35,739 Suze: This is not something that you are going to trade. 228 00:16:35,940 --> 00:16:38,679 Suze: You do not buy this to sell it. You buy 229 00:16:38,679 --> 00:16:42,299 Suze: this to keep it because hopefully it will make you 230 00:16:42,299 --> 00:16:47,020 Suze: money forever until you really need that money. You need 231 00:16:47,020 --> 00:16:49,539 Suze: it maybe to buy a house. I don't know what 232 00:16:49,539 --> 00:16:54,030 Suze: for years from now, but just remember I said that. 233 00:16:54,260 --> 00:16:58,140 Suze: But you know, an idea is only the beginning of it. 234 00:16:58,880 --> 00:17:03,859 Suze: So once that idea was born, Keith had to build 235 00:17:04,160 --> 00:17:08,239 Suze: the exchange traded fund. What does that mean? It means 236 00:17:08,239 --> 00:17:13,640 Suze: he had to get tons of lawyers involved. Next, regulatory 237 00:17:13,640 --> 00:17:17,040 Suze: filings are made. He had to make them with the 238 00:17:17,040 --> 00:17:19,239 Suze: Securities and Exchange Commission. 239 00:17:20,159 --> 00:17:23,168 Suze: And he had to detail all kinds of things and 240 00:17:23,167 --> 00:17:30,129 Suze: disclose everything in writing. Then he had to determine exactly 241 00:17:30,129 --> 00:17:32,769 Suze: what the ETF will own. 242 00:17:33,839 --> 00:17:40,359 Suze: After that, market makers and authorized participants prepare the systems 243 00:17:40,359 --> 00:17:44,680 Suze: that allow shares to be created and traded. Do you 244 00:17:44,680 --> 00:17:50,139 Suze: even know what a market maker is and an authorized participant? 245 00:17:50,479 --> 00:17:54,500 Suze: I bet you don't, but to put it very simply, 246 00:17:54,719 --> 00:17:59,599 Suze: a market maker essentially owns one of the stocks that 247 00:17:59,609 --> 00:18:01,420 Suze: maybe is in this ETF. 248 00:18:02,109 --> 00:18:05,979 Suze: And when this ETF comes out, what do they do? 249 00:18:06,229 --> 00:18:10,329 Suze: They put the shares that they own into the ETF 250 00:18:10,750 --> 00:18:13,229 Suze: and maybe there's a whole lot of different market makers 251 00:18:13,229 --> 00:18:16,349 Suze: depending on which stocks are in there, and that's kind 252 00:18:16,349 --> 00:18:19,989 Suze: of what happened when this first came out. They didn't 253 00:18:19,989 --> 00:18:23,829 Suze: put enough shares in there because nobody had a clue 254 00:18:23,829 --> 00:18:27,229 Suze: that as many shares were gonna be wanted as there 255 00:18:27,229 --> 00:18:31,369 Suze: were the first day. Everybody was testing the water. 256 00:18:32,069 --> 00:18:34,750 Suze: Which is why it kind of came out secretly, believe 257 00:18:34,750 --> 00:18:37,030 Suze: it or not, and all of you thought it was 258 00:18:37,030 --> 00:18:40,349 Suze: really gonna be announced on June 4th. We wanted to 259 00:18:40,349 --> 00:18:45,910 Suze: make sure that everything was working perfectly with Keith's ETF 260 00:18:46,430 --> 00:18:50,468 Suze: before over 100,000 of you are introduced to it, and 261 00:18:50,469 --> 00:18:54,630 Suze: then later on, a whole lot more really because of 262 00:18:54,630 --> 00:18:58,930 Suze: other things that are planned besides the market makers. 263 00:18:59,609 --> 00:19:05,660 Suze: You have authorized participants, typically, everybody, large banks or market 264 00:19:05,660 --> 00:19:09,810 Suze: making firms, and they can create or redeem ETF shares 265 00:19:09,810 --> 00:19:14,800 Suze: in large blocks, usually 50,000 shares at a time. And 266 00:19:14,800 --> 00:19:16,489 Suze: when they do that, by the way, that's called a 267 00:19:16,489 --> 00:19:17,569 Suze: creation unit. 268 00:19:18,329 --> 00:19:20,689 Suze: So, that's just a little bit of what starts to 269 00:19:20,689 --> 00:19:24,170 Suze: go on, all right? So, you have market makers and 270 00:19:24,170 --> 00:19:28,889 Suze: authorized participants that prepared the systems that allow shares to 271 00:19:28,890 --> 00:19:30,929 Suze: be created and traded, all right? 272 00:19:31,900 --> 00:19:34,179 Suze: How long does that take? It takes months. 273 00:19:35,069 --> 00:19:39,989 Suze: Sometimes it takes longer, and once everything is ready, the 274 00:19:39,989 --> 00:19:46,188 Suze: ETF begins trading on an exchange. Now, here's what most 275 00:19:46,189 --> 00:19:49,310 Suze: people don't realize and what I talked about at the 276 00:19:49,310 --> 00:19:55,510 Suze: beginning of this podcast. Just because an ETF begins trading 277 00:19:55,709 --> 00:20:01,189 Suze: does not mean every brokerage firm in America immediately makes 278 00:20:01,189 --> 00:20:03,550 Suze: it available to their clients. 279 00:20:04,329 --> 00:20:09,010 Suze: Each brokerage firm has its own review process. Do you 280 00:20:09,010 --> 00:20:13,889 Suze: get that, everybody? It has its own compliance department, its 281 00:20:13,890 --> 00:20:20,130 Suze: own technology systems, its own timetables. Now, some firms, and 282 00:20:20,130 --> 00:20:21,409 Suze: many did on Thursday. 283 00:20:21,930 --> 00:20:27,130 Suze: Can make a new ETF available quickly. Others like Merrill 284 00:20:27,130 --> 00:20:32,010 Suze: and a few others take days. Some take weeks, and 285 00:20:32,010 --> 00:20:36,770 Suze: some even take longer, which is exactly what was happening 286 00:20:36,770 --> 00:20:42,770 Suze: on Thursday. Yet some of you were so upset, and 287 00:20:42,770 --> 00:20:46,170 Suze: you were upset because your brokerage firm would not allow 288 00:20:46,170 --> 00:20:49,109 Suze: you to purchase shares immediately. 289 00:20:50,089 --> 00:20:53,449 Suze: And even on the Women and Money Community app, one 290 00:20:53,449 --> 00:20:56,729 Suze: person said, Don't you think you should have waited 291 00:20:57,589 --> 00:21:01,079 Suze: until you were ready and everybody was going to carry it? Now, 292 00:21:01,079 --> 00:21:06,609 Suze: I understand that reaction, but here's the truth. If Keith 293 00:21:06,609 --> 00:21:10,849 Suze: had waited until every single brokerage platform was ready, he 294 00:21:10,849 --> 00:21:13,430 Suze: might still be waiting months from now. 295 00:21:14,469 --> 00:21:19,329 Suze: So at some point, every ETF has to make a decision. 296 00:21:20,510 --> 00:21:24,829 Suze: You launch and you let the market decide and then 297 00:21:24,829 --> 00:21:29,030 Suze: you continue working with the brokerage firms as they complete 298 00:21:29,030 --> 00:21:34,869 Suze: their onboarding processes and that is how the ETF industry 299 00:21:34,869 --> 00:21:38,319 Suze: works now I just want to make sure that you 300 00:21:38,319 --> 00:21:39,229 Suze: understand something. 301 00:21:40,050 --> 00:21:45,310 Suze: What happened with FITZ wasn't because nobody cared. 302 00:21:46,040 --> 00:21:51,180 Suze: It existed because so many people wanted to buy it immediately. 303 00:21:51,469 --> 00:21:56,599 Suze: Think about that. The issue wasn't lack of interest. The 304 00:21:56,599 --> 00:22:01,739 Suze: issue was demand. People were calling their firms, checking their accounts, 305 00:22:01,839 --> 00:22:05,770 Suze: looking for the ticker, trying to place orders. That's not 306 00:22:05,770 --> 00:22:09,800 Suze: evidence of failure. That's evidence of excitement. 307 00:22:10,359 --> 00:22:15,119 Suze: And while I know Keith is grateful for that enthusiasm, 308 00:22:15,359 --> 00:22:17,569 Suze: I want to be very clear about something. 309 00:22:18,469 --> 00:22:23,119 Suze: This launch is not the achievement. This launch is simply 310 00:22:23,119 --> 00:22:28,339 Suze: the beginning. Anyone can launch an ETF. The real challenge 311 00:22:28,339 --> 00:22:33,819 Suze: is earning trust day after day, month after month, year 312 00:22:33,819 --> 00:22:38,859 Suze: after year, not through marketing, not through hype, not through promises, 313 00:22:38,939 --> 00:22:43,739 Suze: but through discipline, through transparency, and through consistency and through 314 00:22:43,739 --> 00:22:47,698 Suze: making decisions that put you first for years. 315 00:22:48,449 --> 00:22:52,270 Suze: Keith and I talked about creating something. I wanted him 316 00:22:52,270 --> 00:22:58,250 Suze: to create something that reflected our beliefs about investing, something 317 00:22:58,250 --> 00:23:01,920 Suze: that wasn't built around the latest fad, something that I 318 00:23:01,920 --> 00:23:05,569 Suze: just wanted designed for people like you who want to 319 00:23:05,569 --> 00:23:11,150 Suze: own exceptional businesses and stay focused on the long term. 320 00:23:11,530 --> 00:23:14,449 Suze: And guess what? Keith did that. 321 00:23:15,400 --> 00:23:18,839 Suze: So, until tomorrow night when you're all going to tune 322 00:23:18,839 --> 00:23:22,760 Suze: in to Erin Burnett on CNN, right? 7:30. 323 00:23:23,699 --> 00:23:29,869 Suze: June 4th for the webinar with Keith and myself. Don't 324 00:23:29,869 --> 00:23:34,339 Suze: miss that. And of course the birthday pricing on items 325 00:23:34,339 --> 00:23:39,530 Suze: that you absolutely need and you should want. So until then, 326 00:23:39,540 --> 00:23:41,859 Suze: there's only one thing that I want you to remember 327 00:23:41,859 --> 00:23:43,899 Suze: when it comes to your money, and it is this 328 00:23:44,180 --> 00:23:49,380 Suze: people first, then money, then things. Now you stay safe. 329 00:23:49,619 --> 00:23:50,280 Suze: Bye bye.